Client Scenario

Kade, a young professional and first home buyer, approached us seeking guidance on purchasing his first investment property. While still living with his parents, he wanted to take his first step into the property market and begin building long-term wealth through property investment.

Kade had a strong income and stable employment, however, like many young buyers, he had not yet saved enough for the required deposit and upfront costs. As the purchase was intended to be an investment property, he was also not eligible for the benefits available under the First Home Guarantee Scheme.

During this time, Kade found a property he was highly interested in and wanted to secure before missing the opportunity.

Challenges

The key challenges included:

• Insufficient savings for a 20% deposit
• Ineligibility for the First Home Guarantee Scheme due to the property being an investment purchase
• Avoiding the additional cost of Lenders Mortgage Insurance (LMI)
• Time pressure to secure the property quickly

Our Solution

After reviewing Kade’s circumstances, we recommended a Family Guarantee structure.

Kade’s parents agreed to support him by using equity in their property as security for the required 20% deposit. This allowed Kade to proceed with the purchase sooner without needing to wait years to save a larger deposit.

Under this arrangement:

• The parents’ property was used as additional security only
• Kade remained fully responsible and liable for the loan repayments
• The guarantee was limited to the agreed security amount
• Kade was able to avoid paying Lenders Mortgage Insurance

Outcome

With the Family Guarantee in place, we successfully helped Kade secure the property he wanted and begin his property investment journey earlier than expected.

The strategy enabled him to:

• Enter the property market sooner
• Secure a property he genuinely wanted
• Build equity while continuing to live at home and save
• Start creating a long-term investment portfolio

Kade was excited to have taken the first step in his property journey and grateful to have a structure that made home ownership achievable despite limited savings.