Falling first home buyer numbers are a big concern, reports Property Update, because a home is the biggest asset most Aussies have when they retire.
But as more and more millennials are putting home ownership in the too-hard-basket, they face the prospect of becoming lifetime renters and that could cost them $1.25 million over their lifetime.
As anyone with home ownership aspirations knows, it is hard work saving a deposit. But here are a few tips:
- Prioritise home ownership. It seems simple enough, but this decision is the first step to making financial decisions that will get you on to the property ladder.
- Start saving a home deposit in a high interest savings account as soon as you can. Even if your first job has a low salary, start saving small amounts from each pay pack and you’ll establish a habit that will turbo charge your savings as your income grows.
- Sacrifice some things. This is the tough one but ultimately anyone who has saved for a home deposit has made some trade-offs to get there. Perhaps you might rent somewhere cheaper while you save or go on a domestic holiday instead of an overseas trip. It’s up to you.
- Be realistic about where you can afford to buy. A four-bedroom home in a leafy inner Brisbane suburb might be where you end up, but you’re unlikely to start there. Look to middle and outer suburbs for more affordable buying.
- If you absolutely won’t compromise on location then consider rent-vesting. Buy an investment property in your price range and rent where you like. Seek some independent financial advice to decide if this investment strategy is right for you.
Done the deposit hard yards and ready to buy? View our current listings for sale.
Ready to rent-vest? Talk to us about landlording.