The high cost of property continues to be a hot topic of conversation. There is no doubt that Australia’s capital cities, especially Sydney and Melbourne, attract a premium ‘global city’ price tag. Throw into the mix a generation of frustrated first-time property buyers and it makes for passionate debate as to how aspiring property owners can get their first foot on the property ladder.
Truth is, it has always been hard to buy your first home and it will always be hard to buy your first home. When my grandfather came to Australia from Italy in the 1950’s he lived with our large extended family in a tiny house and saved the deposit for his first home working seven days a week. In the lead up to my first property purchase at 18, I worked day and night to save up the cash needed to put a deposit down and it still wasn’t enough – I had to sell my car too!
So, what can you do today to help you get your foot on the property ladder?
Do a Budget
Everyone hates the thought of doing a budget! However, it is a very useful and important tool that can enable you to achieve your goals. The point of a budget is to work out what your surplus income is and how long it will take you to reach your savings target. If the results are uninspiring, you may need to consider tightening your wallet or working out ways to increase your income.
Sell Depreciating Assets
If you are serious about buying your first home, you should consider selling the ‘assets’ you own that will only ever depreciate in value. You can always buy another boat, motorbike, jet ski or sports car after you get that first property under your belt!
Live Somewhere Cheaper
This ties into the budget piece but if you really want to supercharge your savings consider moving back home with Mum and Dad for a short stint. I understand this is not an option for everyone, however, and there are still numerous other ways you can save, such as renting a room in a larger house or moving into a smaller apartment for a short period.
Utilise a Family Guarantee
If you are lucky enough to have an immediate family member that owns property in Australia you have the opportunity to utilise a guarantee to assist in getting you into your first home. Basically they can ‘guarantee’ the loan by putting their asset up as collateral for the initial deposit. This is a powerful tool and will get you into a property much sooner than saving a cash deposit.
Combining all of the strategies above will see you in a position of property ownership sooner rather than later. Although it may seem difficult at times do not give up on the great Australian dream of owning your own home!