You're Too Young

We all had the same dream when we were young. Grow up, buy a house, move out, and begin our life as an adult. But what we didn’t know, is just how “grown up” we would have to be in order to make this a possibility.

In Australia, the average age of first-home owners is quite high at 36 years of age. And the bad news is, it’s rising. It’s a rarity nowadays to be in your 20s and come home to your own, parent-free house.

A recent study conducted by money.co.uk compared the median age of first-home owners around the globe and ranked them from youngest to oldest. It found that Australia was near the bottom of the list, sitting 18th out of the 25 nations. Belgium and Iceland lead the pack with an average age of 27, while Switzerland brought up the rear at 48-years-old.

If we do the math on housing budget versus real prices there is a large gap. Based on an average income of $75, 000 per year, the money.co.uk study says the average budget for a first-time property buyer is $339, 000. However, the standard price for a two-bedroom unit is $431, 000. This leaves a significant deficit of $92, 000. Not many people would have this in their back pocket, let alone millennials.

While the most obvious factor for the delayed entry of millennials into the housing market is affordability, other influences include individuals studying for longer, and staying in rentals or even the spare room at their parent’s place. For one lucky couple, Emily Duncan and Cameron Jeffreys, they were able to make their dream a reality, although their story is still a rollercoaster ride.

“The housing market is especially tricky to navigate by yourself” the young couple states. But who should you turn too in the face of overwhelming confusion?

Buyers Agent
Mortgage Broker
Property Advisor
Solicitor
Real Estate Agent
Financial Planner
Conveyancer
Home Loan Calculator

"A good strategy is a personalised one," - John Pidgeon

Are you ready to make the first and most difficult step towards calling yourself a ‘home-owner’? Recently, a survey conducted by First Home Buyers Australia found that over 40 per cent of people thought accumulating a deposit was the most daunting part of the process.

Saving, in its simplest form, involves goal setting and discipline. Check out Emily and Cameron’s saving and budgeting strategies. The hard work that awaits involves meticulous planning, sacrifice of non-essentials, and research and investigating. “Go to every open house, even if you’re not interested. It’s just to get a feel for the market and where you stand” the couple advise. They highlight that “buying based on what loan you can get, not what you can save” is a one-way ticket to mortgage stress.

The reality of owning a home doesn’t stop at the property price. Millennials need to consider agent fees, stamp duty, lenders mortgage insurance, building and pest inspection fees, legal fees, and council and utility rates. These extras are what makes a house a home.

At the end of the day, breaking into the housing market as a millennial is daunting, but not impossible. Success stories such as Emily and Cameron keep the hope alive and with good saving strategies and research your road from house to home is attainable.

If you are in need of further assistance…who you gonna call? …no, not ghostbusters. Use the below contacts and resources for help.

- HOUSING INDUSTRY ASSOCIATION

(02) 8878 8400

- LAND & PROPERTY INFORMATION NSW

(02) 9228 6666; 1300 052 637

- LAW ACCESS NSW

1300 888 529

-LANDCOM - SALES OFFICE
(02) 9629 2999

- MASTER BUILDERS’ ASSOCIATION

(02) 8586 3555; 1800 451 393

- FIRST HOME PLUS/FIRST HOME OWNERS GRANT SCHEME

(02) 9685 2187; 1300 130 624