It’s Still Possible to Get into the Property Market in Your Twenties

With the Australian media focusing on the upward trend in housing prices and the downward trend of profiting young Australians, we can understand why first home buyers feel daunted by the prospect of buying their first home. Even more so by the idea, they can do it in their twenties.

But what if we told you that it IS possible?

Whether it’s for an investment property or first home, planning, creating a strategy and following through with your goals form the basis of how you can get your foot on the property ladder much earlier than you might expect.

1.    Plan young and get off to a good start

A Members Bank study found that the savings habits of Australians leave something to be desired – 59% of people did not habitually set a budget, and 41% did not regularly stick to it. Saving for a deposit is perhaps the first step to achieving your property dream. To start your plan or budget, do as much research as you can about the property you’re after, discover how much it is going to cost you, and work out how long it will take you to save for the required deposit. From there, you can create a strategy and set yourself goals to get your foot on the property ladder sooner.

While a savings strategy will most likely cause you to be wiser with your money, achieving your long-term investment or home-ownership goals will be worth the smaller sacrifices earlier down the track. You’ll also lay the foundations for good savings habits in the future.

2.    Know your market!

Research is the best way to familiarise yourself with the housing market of your area. Having an idea of the crime rates, amenities available and property value increases or decreases can give you an outlook for rentability and resale future of the property. Research is also essential so that you understand the buying process, are aware of things to consider and are prepared for the responsibilities of home ownership.

3.    Save Young

For the parents reading this: if you have young kids, you can help get them off to a good start by encouraging savings habits from a young age.

The Press Association found that by the time the average child reached the age of twenty-five, they could receive up to $218,051.87 from a culmination of pocket money, tooth fairy donations, odd jobs, part-time jobs, hand-outs from parents and rewards. If a child were to save just 25% of that amount, they would have saved enough for a deposit by their mid-twenties.

While this does not apply to every child or family, starting young could make a significant impact on a young person’s ability to purchase their first property in their twenties.

For the twenty-somethings: have you ever heard of a guarantor loan? Find out about them here.

4.    Keep your eye on the prize

Sticking to your guns and keeping with your plan is the key to achieving your financial goals. It was found that only two in five 18 to 25-year-olds are currently saving for a deposit on a house. Can you proudly say that you are one of those two people saving for a deposit? Knowing that you are working towards achieving your financial goals can create an intrinsic sense of achievement that can be much greater than the tangible outcome.

5.    Get professional advice

A recent survey conducted by First Home Buyers Australia found that 38% of first home buyers believed mortgage brokers were the most helpful service when purchasing property. You won’t have to feel lost and struggle between trying to decide between hundreds of different deals and lenders. With over 30 years experience and access to numerous lenders and packages, we'll find the right one to suit your circumstances.

At Select, we offer no-obligation, quality and free advice to help you reach your financial goals. If you are a prospective first home buyer looking to get your foot on the property ladder, we can help! To speak to one of our brokers give us a call on (09) 9417 3399.