24 Oct 2021 | 4 mins
Overview
  • It may feel like you will never have a shot at getting into the housing market and for the most part, you're feeling right. But it is possible.
  • From someone who has gotten in - it's not an exclusive club, it's a lifetime of debt... but an investment. So make sure you actually want to do it 🏘
  • Speak to a mortgage broker, be on the lookout for incentives and start small. Affirmations: you WILL get there!

Every now and then, we see articles (no slander here) exploring just how easy it is to get into the housing market. They are titled along the lines of:

“How 21-Year-Old Nathan Owns Two Homes 😧🏡”
“How Sarah Could Afford A 4-Bedroom House ✅”
“Homeowner Reveals How He Bought At 18-Years-Old 🔨👷”

There’s often a small paragraph on how their parents are guarantors, they’ve received a large sum of money from their grandparents or they bought at the right time - but obviously, not everyone has this luxury. Buying and investing in property may look like a walk in a park but that is definitely not the reality and it's a market that has completely shut young Australians out of ever thinking they have a chance.

@thevaluer It’s not the Sydney house that’s gross, it’s the price tag #sydneyproperty #brisbaneproperty #propertytok #funny #houses #housesoftiktok ♬ i like you have a cupcake_fish hooks - faythe

People are choosing better paying jobs over chasing their dreams just to get a deposit together. People are working their asses off instead of living their best younger years, just to get ahead.

To think that my parents' first house cost the same amount as my tiny deposit, is utterly ridiculous. We have this conversation many a time:

Bianca: “The housing market is ridiculous; I can’t wait for a lifetime of debt”
Mum & Dad: “Well, we were only earning $300 a week and the interest rates were through the roof”

Boomers (love you, mum and dad) complaining that they had it tough compared to us, does not equate. Their lower wages (which was the norm back then) versus our inflated cost of living is not the same. 

We'll be carrying around this debt for a long time. Plus - the toll it takes on you emotionally? You are right to believe it’s not easy when you haven’t been passed down a silver spoon.

@investwithqueenie True story 😩 Sydney real estate... #realestate #sydneyaustralia #fintok #moneytok #realestateinvesting #buyingahouse ♬ Oh No - Kreepa

Now, you're probably thinking this is a how-to-get-rich-quick or con-your-parents-into-giving-you-their-hard-earned-dosh article but this is quite the opposite. 

Barefoot Investor vibes, anyone? If you really want to be a homeowner before you hit a quarter of a century, it’s hard work. The gap between saving a deposit and the prices continuing to rise is getting bigger and there’s no indication that it’ll slow down anytime soon. But it is possible - I am living proof. Just for transparency:

  • I have thousands in HECS debt 📚
  • I have worked my fair share of hospitality and retail while studying 🍟
  • I’ve lived in Western Sydney my whole life and bought there (not as much of a sh*thole as you might think) and still an exxy area to live 🏘
  • I have a partner that is great at saving 💰
  • Our parents didn’t give us a drop of money to pay for it but gave us their valuable words of wisdom 🫂

If the housing market is feeling a little out of reach, here are some of my tips to get ahead:

1. Put money aside but do not leave yourself short

Whether you love a bevvie with your mates or buying a new outfit for the weekend, go for gold. Do it. Put some money aside for your savings as soon as you get paid, give yourself enough money to cover your expenses and allocate play money to spend on whatever the hell you want, guilt free (leisure, food and drink). Everything in moderation!

2. Speak to a mortgage broker

Our mortgage broker gave us perspective - we thought buying a home was impossible. He spoke with banks to see what interest rates and loans they could offer us. He put us on a path of saving and how much we needed to get to where we wanted. Find a legend of a mortgage broker and you’re good to go.

3. Dream big but start small

If you’re trying to get into the housing market ASAP, it’s a good idea to start small. It might not be your dream home but remember, you won’t be there forever. Home is where and what you make it. The main thing is that it is yours and you will have worked so hard for it.

4. Don’t feel overwhelmed about getting priced out

You are a first home buyer going up against families, business owners and high-earning individuals - there are heaps of people that can bring more money to the table than you and that is okay. You’ll have seedy real estate agents trying to squeeze your last few dollars out of you or simply tell you that you don’t have enough.

@purplepingers #melbourne #sydney #realestate ♬ original sound - Purplepingers

Speak with your family, friends, work colleagues and you’ll get a gist of how much things are worth.

5. Always be on the lookout for Government incentives

Whether it's home building grants, stamp duty concession, regional grants or something to go towards your mortgage - the Government is trying to make it easier for first home buyers to enter the market. Depending on your state, it’ll vary, so suss out NSW, QLD, VIC, SA, WA, NT and TAS + how to take advantage of ‘em.

No matter what you hear - it is hard but if it's a goal of yours, you'll be able to get in faster than you think. It's not an exclusive club - it's a lifetime of debt but hey, it's an investment for your future 🌱

If you're looking at investing in your future, why not suss out FinLit? School rarely teaches you about how to keep track and use your money day-to-day - if you want to get ahead and in control of your finances, start your first module!