It is one of many biggest frustrations younger professionals face: being in a very good job, on a very good wage, however nonetheless not having the ability to afford their very own residence.
Whereas they may have the power to service a mortgage (paying exorbitant hire for years has given them loads of apply!) the principle hurdle is the deposit.
Many merely haven't got the lump sum to get a mortgage, and irrespective of how laborious they attempt to save, they cannot sustain with unprecedented market development.
Cue OwnHome, a brand new startup that's like AfterPay however for properties. It has the becoming tagline "transfer in now, pay later".
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The shiny advert guarantees "save on your dream residence, when you dwell in it, that means you possibly can kiss the renter's life goodbye".
Finally it is an alternative choice to renting and saving.
"For all these individuals who need to get a leg up on the property ladder and both cannot or do not need to depend on the financial institution of mum and pop," OwnHome co-founder Tim Harley defined.
Zaheer Jappie and his accomplice Michelle are a few of OwnHome's first clients.
They moved into their residence with their two younger youngsters two months in the past, in Campbelltown in Sydney's south-west.
The pair did it with out having to save lots of a hefty deposit.
"Having your personal area and sense of possession, it is one thing we actually love," Mr Jappie mentioned.
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How does it work?
To purchase a $1 million residence, you pay an upfront price of $25,000, which is a fraction of the $200,000 deposit you'd have to keep away from lenders mortgage insurance coverage.
OwnHome purchases the property outright in your behalf, protecting stamp responsibility and conveyancing prices, so you possibly can transfer straight in with a deposit.
You may as well select your dream residence, so long as it falls beneath the $1.8 million cap.
"We got here to the open residence, we referred to as OwnHome and mentioned we need to get this home and so they made it occur in a number of days. Critically a number of days, it was superb," Mr Jappie mentioned.
You then pay $70,000 a 12 months, or $1350 every week, over a 3 to seven-year contract.
OwnHome pockets the lions share, $45,000, whereas the remaining $25,000 accumulates as fairness within the property every year.
After 5 years you will have contributed $125,000, which probably can be utilized as fairness to take out a financial institution mortgage and switch title.
The worth you pay for the house is locked in in the beginning of the contract, primarily based on the property growing in worth at a charge of three.8 per cent every year.
So a $1 million residence will value you $1.2 million in 5 years' time.
OwnHome then deducts the contributions you have made, round $150,000, providing you with a mortgage of $1.05 million.
It is a foot within the door with potential for development.
"You get the capital features upside above the pre-agreed worth, you get to make the house your personal, so now we have clients placing in carpets, faucets, issues renters simply do not do," Mr Harley mentioned.
In a vote of confidence, the corporate has earned the backing of Australia's greatest lender Commonwealth Financial institution.
"We like OwnHome, we predict it is an modern mannequin, so we needed to make an funding," Commonwealth Financial institution Chief Govt Matt Comyn mentioned.
The catch is the technique solely works in a rising market.
NAB is forecasting Sydney home costs to fall 11.4 per cent subsequent 12 months attributable to rate of interest rises.
What occurs if the market goes backwards?
The acquisition worth nonetheless will increase at a charge of three.8 per cent a 12 months.
On the finish of your contract, if you do not have sufficient fairness to purchase the property, you danger shedding the home and any cash you have put into it.
"We all know there will probably be cycles within the property market however in the long term Sydney has traditionally seen incredible development," OwnHome co-founder James Bowe mentioned.
You will additionally nonetheless have to stump up stamp responsibility whenever you take possession and probably lenders mortgage insurance coverage.
"You have to bear in mind OwnHome aren't charity, they're being profitable by charges, not simply in the beginning however during in every cost," Sally Tindall from RateCity mentioned.
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Hire to purchase schemes are banned in South Australia and Victoria, however OwnHome has put in measures together with in the event you miss a cost you will have a 70 day grace interval to type out your funds.
If every little thing goes to plan you possibly can speed up the trail to proudly owning your personal residence. It can save you for the deposit whereas residing in it and likewise get the advantage of capital features.
However in a flat or lowering market, you danger strolling away with nothing.
It is a gamble, however one Mr Jabbie and his household are comfortable to take.
"There have been years of hypothesis the property market goes to crash however it by no means has," Mr Jabbie.
He is planning to modify over to a financial institution mortgage in three years.
Within the meantime, the pool out the again of their roomy five-bedroom house is getting a exercise.
"The youngsters like it," Mr Jabbie mentioned.
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For now, at the least, they're residing the Nice Australian dream.