For many people owning their own home is the ultimate dream. After all, it represents the opportunity for financial security in a volatile climate. It’s particularly beneficial to own your own home in retirement.
However, the average price of an Australian home is now approaching $1 million. Naturally, this is dependent on where you live and there are properties significantly cheaper. However, there is no doubt that buying a house in your 20s is a challenge.
Fortunately, there are ways in which you can make it possible.
Win The Lottery
If you take a look at the Surf Life Saving Australia website you’ll see that you could actually win your dream home and some cash in the bank. Of course, there can only be one home winner per draw. However, if you don’t enter the draw you have zero chance of winning.
This is a long shot but it would feel great if you won and, when entering you are also supporting the Surf Life Saving Foundation work.
Winning the house lottery would be great. But, while you are waiting for that to happen start looking at what properties are available. In most cases, you’re going to need to put down 20% of the house value as your deposit.
That’s a significant amount of funds to raise. Knowing how much you can raise will make it easier to work out the value of the house you can afford to buy and help direct your search.
Check For Help
There are a variety of aid programs but what is available depends on which state you live in. You may be able to get a low deposit first-time buyer loan, as little as a 3% deposit. It’s also possible to get grants, interest assistance, and even loan forgiveness.
Pay Your Bills
If you want to buy a house then you’re going to need finance. Loan companies will look at your track record to assess your risk. You can make sure you are low risk and qualify for the best possible loan by paying all your bills on time. It will reflect well on your credit record.
You need to create a budget. This lists all your income and expenses. Your income should be higher than your outgoings, allowing you to start saving. If it isn’t you’ll need to boost your income through a second job or a pay rise, or you’ll have to cut back on your spending. Doing both can maximize the amount of money you can save for a deposit.
There are plenty of side jobs you can take to improve your budget, such as Uber driver or walking dogs for people.
Take a look at your current saving account and then see what else is on the market. You need to find the account that offers you the best interest rate. The higher the interest rate the quicker your savings will grow and give you the deposit you need.
Alongside this you need patience and dedication, you will get there in your 20s.