Are there any first time home buyers left? There may be, according to this article but the once growing horde is slimming down somewhat.

It's getting harder and harder for first time home buyers to get into the market as interest rates increase and property values continue to soar. Salaries haven't kept up and the only home buyers left in the market are second or third generation purchasers.

So what options are left for the little people?

It wasn't that long ago that we began scoping the financial landscape for our first home - and that was before the big property boom. Today, most of our friends shake their heads wondering how first time home buyers will ever get into the market. Will their mortgages exceed their lifetimes? Will their children inherit their debt?

Hopefully these won't be the outcome as there may be a few options available for first home buyers. Here's a few loan options;

• Zero Down Payment Loans - Before you even contemplate this as an option you need to understand that buying a home with this type of loan, at the end of a property boom, is the worse thing you could do. Prices will invariably drop and if you default on your loan payments you could end up owing the bank more than the home is worth.

  Having stated that, these loans are a great option for first home buyers. They don't require a deposit so you can get into one just as quickly as getting into a rental contract. The downside is you don't have the deposit to offset any of the interest payments.

  But still, with property prices increasing, you won't be able to save enough deposit to get into a home as you will continue to get further and further behind.



• Allow boarders and proposition your bank manager - There is one thing working to your advantage here - rent is also increasing. Not only is it hard enough to buy a house, it's becoming too expensive to rent.

  Draft a plan that allows you to accommodate a few boarders in the spare room, thereby increasing the amount you can use to service a first home loan. Banks are always looking for good options to loan money and a well thought-out plan should give them enough confidence to lend you enough for a mortgage.



• Shack up with your best friend's wife (and him, of course) - Try splitting the loan between two couples. There is a little more paperwork and bureaucracy that will need to be attended to in this situation but it can be done.

  Both couples split the home and amenities while only paying half of the mortgage. When it comes time to sell, the other couple buy your half out or you split the price that the house sells for. Easy.



• Get the parents to pay half - As most parents are into their second or third home they easily have enough equity in their home to use as capital on a new mortgage. If you play your cards right you could even get them to pay half of the mortgage so that it becomes an investment for them as well.


• Source a first time home buyers grant - Many governments are now offering grants to first time home buyers to help get them into their own home. Finding viable sources can be as easy as searching Google or visiting a home display centre.



It is getting harder for first time home buyers to get into the market, but it's not impossible. Take some initiative and find alternatives to get the result you're after.