Getting that first home loan

The problem faced by many parents at some stage of their kids' lives .

Lil' No Mates are now considering getting started with an IP (low value, on train line). Yes, they still exist. They will probably be even better value once the heat comes out of the market. They have no aspirations of this being a 'forever home' or necessarily living there at all, it's a foot into the market.

Good savings record (have casual jobs & regular shifts).

No credit record.

They should qualify for early offers to uni or alternative pathways so will have several more years of study ahead of them & only will only have casual jobs for years to come.

Should they get a low value credit card (or is it an impediment)?

As it's an IP, would they qualify for stamp duty exemptions or for a First Home buyer's grant in the future?

Do they lose all of that if they buy jointly (& again in a few years)? Or should they buy one each with lower deposits?

Do parents need to go guarantor? (or will LMI be a better option)

Are casual jobs going to be considered favorably by lenders? How long is considered as the minimum time for employment?

Should we loan the difference between finance and savings to bridge the gap?

(We could buy in a trust if that works and alleviates issues with direct purchase but may be more hassle than it's worth).

 

With casual jobs how are they going to service the loans? Are they aware of the responsibilities that will come with being a landlord?

Don't get a CC - will just reduce borrowing capacity

Yes if they purchase an IP they will be forgoing their first home grants.

Think carefully before you go ahead here. It may be more prudent to wait until they are a bit further along with uni, etc. But yeah there's plenty of pathways here, depending on level of assets, incomes for both kids and parents and understanding what sort of support is on offer, etc