Recommend a Broker/product for a FHB

Hi all,
I have a friend who is a first home buyer, wanting to buy his first house in Melbourne outer suburbs.
I think they are looking at around a 400k spend.
Problems are, they have only started saving for deposit and don't have much saved.
Him and his girlfriend want to buy as soon as they can. I think they are both around 30, no kids. Both work full time, but the guy is self employed trade, though earns good money.
He said though he is earning good money, his last tax return was around 50k after expenses etc, he is worried this may be an issue, he expects this years to be higher.
Not sure what the GF earns but she is working full-time PAYG.
I've told him I think the fastest way in is to buy some land that isn't titled (try to find one with titles 12 months away) with his deposit, then wait for some equity to build while they are living at home with the parents.
If anyone has any strategy/product suggestions, and broker suggestions that I can suggest to him let me know and I will pass on the info.

 

Someone with more knowledge can correct me on this but I believe if you're self-employed you'll need to have a minimum of 2 years tax return.

Is there a reason why they need to buy so soon? Does it have anything to do with the new Stamp duty changes for FHB?

If as you say they both have good incomes with no children they could easily save a 20% deposit within 2 years, maybe less if they're frugal.

Ta

 

It could be an idea for them to chat to a good broker regardless. The broker can give an indication of what savings and tax returns will be required.

 

I agree, I have said to him he needs a good broker to see what he needs to start doing to prepare. I think they fear that by the time they will have saved the deposit by the time the time comes prices would have moved up.

 

There are lots of good brokers on the forums, but being a FHB they may like to see someone face to face - Simon Moore or Pete Tersteeg would be good places to start.

 

Thanks, have just forwarded their details to him.

 

I think @Jess Peletier is being humble.

She is an awesome contact point and is eager to help new people starting out.

 

Should be no prob to find a way to go forward if no large debts, such as new cars etc, but they need the deposit, if they are both on 50, they should have a fair deposit after a few years, otherwise they have hidden expenses or been wasting money.

Lot also get caught out as they do not factor in all the extra costs, council, water, insurances, repairs, unlike renting, you get lumped with all this.

 

I'd definitely suggest they touch base with a local finance broker to have a chat about their options. They would find out pretty quickly whether doing it now is a possibility or they have to wait a little longer.

 

Some lenders these days are fine with 1 year.

 

I put him in touch with the brokers. Not sure how he went- don't want to ask him incase he didn't get told he wanted to hear