There’s little denying that the property market is tough for a lot of young Australians at the moment. Even if you have followed Joe Hockey’s advice and gotten a “good job that pays good money”, it is still hard to save for a deposit and buy a home in areas where property prices seem to be getting out of control.
Unfortunately there are some suburbs, such as inner-Sydney or Melbourne, where buying a home is simply an unrealistic goal for many young Australians, however there are strategies to get into the property even if you aren’t earning as much as you would like.
Move back in with the parents
While this may not be practical for everyone, there’s little denying that renting can make a huge dent in your savings. Staying at your parents, or your partner’s parent’s house might help you get a head start on your savings so you can buy a home sooner.
Buy with friends or a partner
It’s hard for the average person to be able to afford a home on one wage, particularly when you’ll be competing with a lot of couples on a dual income. Buying with any other person is a big commitment though, so make sure that you only buy with a person you trust and whom you know will be able to meet their share of the repayments.
Make some sacrifices
Saving for anything will require some kind of sacrifice, let alone what could be the biggest expense you make in your lifetime. Have a think about where you could cut back – maybe you could have fewer nights out or stay away from the morning coffee. Your social life might suffer for a little while, but it will all be worth it when you’re celebrating at the housewarming of your first home.
The closer you are to the major cities, the more expensive properties are going to be. If you’re happy to move elsewhere then it opens up your property options considerably. For instance, the 12-months median property price for a house in March in Bacchus Marsh is $388,000 according to Domain, much lower than the median price of $528,000 in Melbourne.
Buy an investment property
If you’re not willing to move away from your current neighbourhood then an investment property could be a good option for you. Property prices might be high in Sydney and Melbourne, but affordable properties can still be found in many corners of the country that could help you get your foot in the property market.
There’s no denying that saving for a home is tough, but it is possible with a lot of hard work, patience and planning.
Feel free to leave a comment with any questions about buying a home and we’d be happy to offer advice in upcoming blogs.
If you would like to see properties available to buy in the Bacchus Marsh region you can view properties for sale on this website.