Thanks to a booming real estate market, housing affordability for city-dwelling Millennials in Australia is a widely recognised economic challenge. If you've done any research into buying your first home, we can almost guarantee you've received some very bad, or at least, tone-deaf advice.
There's no magic pill to saving for a first home deposit, other than financial discipline and finding the right home for your budget and objectives. This can be difficult if you currently have no savings or are living paycheck to paycheck.
It might sound like doom and gloom, but FinancePath’s Managing Director, Mark Attard, is here to assure you that it’s not. Read on to find out Mark’s expert advice on how to escape the “rent trap”, and for meaningful steps that will help make your first dream home a reality.
You're doing a great job
Mark's first piece of advice? Be kind to yourself.
“Saving up a deposit isn’t easy, and understand that if you're renting, that's okay," he says. "People don't have to think they're in a bad situation just because they’re renting. Some of the most financially literate, wealthy people in our country rent." Why, you may ask?
"Because they can rent for less than the interest they would have to pay to a bank,” Mark says “The key to their success is then using the money they save towards other investments, including property."