For Tammy Law, a newly single mum of two young children, home ownership seemed an impossible dream. With no deposit saved, and a constant stream of bills and expenses, she couldn’t see a way to get off the rental cycle and into her own home.
When she came across our services, Tammy was amazed to learn it was possible to buy a home without a deposit. In June 2020, she attended our free 60-minute HomeBuyer Accelerator Discovery session online, and was excited to learn the strategy could work for her.
With our help, she set up a self-managed super fund where she was able to leverage her super to access a loan for a deposit. Today, she is the proud owner of her dream home in her ideal location—and she achieved all of this with absolutely no money down. Read on to hear her inspiring story.
Tammy’s story
When Tammy’s divorce was finalised, she found herself in a challenging financial position. Unfortunately she lost three homes in the fallout, and as a single mum of two children, she was unsure how she could get back on her feet. She was lucky to maintain stable employment through the COVID-19 pandemic as an essential worker employed by Woolworths, but felt there was no way in the foreseeable future that she could save enough for a home deposit while supporting her family on her own.
How we helped Tammy build a home without a deposit
Before we met, Tammy, like most people, had no idea it was possible to buy a home without having saved a deposit. After she attended the online discovery session, she met with our finance and analyst team to find out if our HomeBuyer Accelerator Program could work for her. A full assessment was undertaken to uncover her affordability and borrowing capacity. Tammy was delighted to discover it would be possible to utilise this strategy to build a home in her preferred location in Townsville. By switching to an SMSF, Tammy could access a loan to use for a deposit on a new home. Our team got to work on this, setting up the SMSF optimally to suit Tammy’s needs and meet all required legislation.
Finding the right land
The next step was to find the right property. Our team provided guidance on suitable land and house designs that fit within her budget. Tammy enthusiastically took on the task of finding land, and over the next few weeks visited potential locations that fit the criteria. She contacted us one weekend, filled with excitement, and started live streaming Lot 1027 in the Kalynda Chase development. She had found her perfect block, complete with a park across the road where the kids could play.
Choosing the right design
With land pencilled in, it was time to look more closely at house designs. Tammy needed something that would suit her young family, and could accommodate her part-time business that she operates from home. A well-appointed kitchen with a large pantry was also on her wish list as she loves to cook. We worked with our partner builder to design a home that ticked every box and included a multi-purpose room for her home office, which could also act as a fourth bedroom to increase the resale value in the future.
Dream house and land package a reality
With the finer details of the design set out, and her deposit in hand (secured via a loan through her SMSF investment trust) it was time for Tammy to approach her lender to apply for a loan. Determined to manifest her dream home into reality, Tammy ordered a custom letterbox sign complete with her future address. It worked—on September 30, 2020, just three months after attending the HomeBuyer Accelerator Discovery session, Tammy received the news her loan was approved. The design and building team got straight to work, and Tammy is now well and truly out of the rental cycle and is the proud owner of her own dream home.
What’s next for Tammy?
Now that Tammy has her SMSF up and running, we will continue working with her to maximise her super through investments in property to help her achieve a secure financial future. We will review her strategy regularly, guiding her when the time is right to further invest in property funds or additional investment properties to maximise her return in a low-risk, sustainable way.
If you’d like to find out if the HomeBuyer Accelerator Program could work for you, take the quick quiz to find out if you qualify. If you are wanting out of the rental cycle but are struggling to save a deposit, this solution could change your life, as it did for Tammy.
Have a question about SMSFs or our HomeBuyer Accelerator Program? Get in touch with our team on 0448 274 577 anytime!
