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Top 5 Tips for the Next 5 Years: Young Australians Who Want to Buy Their First Home
Top 5 Tips for the Next 5 Years: Young Australians Who Want to Buy Their First Home
For many young Australians, buying a first home can feel overwhelming. Between rising property prices, rent increases, and the cost of everyday living, saving a deposit often feels like a moving target. But while the market may be challenging, there are still smart ways to put yourself in a stronger position over the next five years.
Here are five important tips every future first-home buyer should know.
1. Start Saving Early - and Save Smarter
Building a deposit takes time, but using government initiatives like the First Home Super Saver Scheme (FHSSS) can help accelerate your savings. The scheme allows eligible buyers to make voluntary super contributions that can later be withdrawn for a home deposit, often with potential tax advantages compared to saving in a regular bank account.
2. Be Careful With Car Loans and Buy Now, Pay Later Services
Many buyers underestimate how much debts can reduce borrowing power. Car loans, personal loans, credit cards, and even services like Afterpay or Zip Pay can significantly impact how lenders assess your ability to repay a mortgage. Even if repayments seem small, lenders still factor them into your overall financial commitments.
3. Budgeting and Spending Habits Matter More Than You Think
Lenders are paying closer attention to how Australians manage their money day-to-day. Creating a realistic budget and tracking your spending can help you build stronger savings habits and show lenders you can comfortably manage repayments. Frequent overdrafts, missed repayments, gambling transactions, or constantly spending your entire pay cheque can all negatively affect how a bank assesses your application.
4. Explore Different Ways to Enter the Market
Your first property may not be your forever home, and that’s okay. Many young Australians are considering apartments, regional areas, or property share arrangements to enter the market sooner and start building equity earlier.
5. Speak to a Broker Earlier Than You Think
Understanding your borrowing capacity early can help you make better financial decisions years before you apply for a loan. A broker can also identify small changes that may improve your position over time.
Buying your first home may take planning and patience, but small financial decisions made today can have a major impact on your future opportunities.
Get ahead of your home ownership journey by speaking with a Priority Home Loans broker today.
