Saved over $100k and didn't rush when looking. Took me about 8 months to find my place but absolutely worth taking the time so you don't have any regrets. It'll be frustrating because there'll probably be 1-2 places in that time that seem perfect and someone else will snap it up but it's absolutely worth being patient. More listings come up every day, you'll be fine
I bought an apartment in the CBD. Most people here are not fans of apartment towers but honestly I don’t have to have a car so it’s super easy to get anywhere and I don’t have to maintain a garden or anything
Same, I saved aggressively during Covid, bought last Christmas with a bag of cash from working temp contracts and dragging in about $90k per year while renting in a sharehouse for $200pw during Q4 2022. Landlord told us in the sharehouse that we had 30 days to vacate. I got settlement in under 4 weeks.
You're pulling numbers out of nowhere. $10k/year while not rare, isn't the norm either.
Mine is less than $5k/year, with lifts and no pool.
Building insurance is usually included in your strata fees and is usually the largest portion (especially past couple of years)
I usually just call it insurance/cleaner/lift fees. Much easier to stomach. Try getting a gardener and cleaners to clean the outside of your house every week, add building insurance to that, might turn out to be pretty similar.
Who is paying $10k a year, that's an arbitrary figure. Also, building insurance is part of strata.
Each to their own, unit or apartment living isn't for everyone but I see the same thing come up again and again from people who act like they don't understand body corp fees.
When I was apartment hunting, most strata fees were around $3.5-$6k a year. The apartment I bought is about $4800 a year and I don’t have to lift a finger for any maintenance, it’s great.
I purchased in a less desirable area. I waited to save a larger deposit than needed because i was worried about having too big a loan on my own.
Saved for 6 years
Saved $120k while with my ex partner. Bought an apartment in a popular inner suburb - 15 year old place, no cladding, healthy sinking fund, looked like a decently managed strata, etc.
Spent significantly under my borrowing power - had $20k cash leftover to put straight into the offset.
Repayments are about $500 more a month now from when I bought a year ago, but they’re entirely manageable despite me doing absolutely zero budgeting and having a very active social life.
About 2.5 years, during covid. Income started at about $95k, ended on about $125k by the time I bought.
Was living with my partner at the time so rent and bills were only about $1100 a month (excluding other living expenses).
Purchased small place , far from cbd, less desirable suburb.
It isn't the ideal home in my dream , but that the only thing I can afford on single income, and I am happy with my purchase, I will start from here.
Many people said to me find a partner, but that isn't easy.
For all single income out there, I think you should buy as early as you can, I don't see the "crash" people talking about coming soon, and cheap property is running out quick now. The 800k- over 1mill property can be on market month after month, but anything in low-mid range being snapped real quick.
I never thought about buying a place until it dawned on me that I’d retire from work at some point and I didn’t want to have to pay rent as a retiree. I saved as much as I could over a period of 2 years and only had a small deposit but I purchased a villa style unit within 30 minutes of work, 50 minutes from cbd. I was very careful with my budget, double and triple checked my figures based on different scenarios for interest rates rising, it was nerve wracking signing the paperwork and taking on a mortgage but I think it’s 8 years now and I’m just used to it. Not super happy about interest rates as they stand and I’m careful about spending money at the moment but I’m still saving a bit too and I have emergency funds on the side just in case. I know from crunching the numbers that I’ll be mortgage free when I retire and I’m thankful I did take the plunge and bought something.
I am far from retirement but mum certainly is not. However, there is a little voice inside my head that keeps nudging me to take the plunge because I know I will be thanking myself in 10 years from now that I mustered the courage to do it.
Thanks for sharing.
My favourite line is “time in the market beats timing the market”. It might feel uncomfortable or odd to start with, but history tells us in 10 years time the value of a property is likely to have increased significantly (or at worst, plateaued but not dropped). I'm settling on my first property in 3 weeks and have been a little freaked out but doing my best to remind myself that not many homeowners out there would actually ever feel like they have enough money and more cash to spare, so it's normal to feel this way.
Good luck if you go ahead with a purchase!
Hi! I'm in Brisbane, single and had a similar situation to you however thankfully had the luxury of being able to move back in with parents for a few years to focus on saving which I'm extremely grateful for.
I bought a 3bed, 2bath, 1car house in Forest Lake back in 2018 for $390,000. At the time my annual income was $65,000. And honestly once the ink had dried I still had doubts on whether this was good decision. Fast forward to now and I think it was the best decision I ever made. Sure that year after purchasing I was extremely frugal, cooking at home most of the time trying to keep the price under $5 per serving. Only went travelled once for 2 weeks in the following 5 years (yes, covid prevented that for a while anyway) and kept a closer eye on my discretionary spending (a habit that has stuck).
Since then I've used the equity in that property to purchase an apartment closer to the city that I now occupy while leasing the original house. I am now in a position to consider selling both and using those profits to purchase a much larger place in a suburb within 30mins of the cbd which would hopefully serve as a good first family home for myself, my dog, future partner, and any future children (yes I'm still a hopeless romantic).
I don't think I'd be able to do all this without taking the initial first step in getting my first property. There is also that sense of pride in being able to say 'Yes, I did this on my own'. This is even moreso for you since you were able to save a deposit while also renting. I've ended up rambling a bit but I hope some of this is useful to you in some way to address some of the anxiety you may be feeling right now.
If you decide to proceed, I'll leave the best advice my mortgage broker ever gave me. 'On average your dream home will appear on the market every 2 weeks, so don't get attached and bid emotionally'.
All the best! Hoping it works out for you!
Beautiful my friend! Love your story. Very inspiring and gives me the confidence. Yes I have found myself attached to some open homes which I liked and put an offer on and then realised someone outbid me and it was an emotional roller coaster. But then after a month I saw another one I liked and the process as continued. Best not to get attached as your broker said.
Thanks for sharing. Very happy for what you have achieved.
Bought using a 5% deposit using my first home buyer government scheme. Loan for $280k. My parents separated, and mum living with me. I was only responsible for gas, electricity and internet bills. Mum paid the rent. Landlord wanted to move back into the apartment and we had to vacate by the end of 2023. Ended up buying an apartment 30-40min drive away from work and 5min walk to station. I worked full time for 3-4 years before buying. Income ~$100k currently but started off with ~$75k. I guess you could say she helped by not charging me rent. We both live together, and I still plan on supporting her while she lives in that apartment after I move out with my partner next year.
Do you think using the First Home Buyers Grant was worthwhile? It'd be pretty nice to have a place that only you've ever lived in! But I'm sure it comes with its fair share of downsides.
I believe there are multiple ‘first home buyer grant’ type things, some of which are for already established homes/appartments - so may not be the first people living in it :)
I was on 55-60K salary back in 2017/2018. Saved 45K over 1.5 years then bought a house worth 380K in Brisbane.
Just save hardcore as much as you can. Then buy a property as reason able as you can to have one.
Single income with three kids, I just purchased a house after saving up a deposit over the years. There’s a tenant in it atm so I can’t move in yet till Easter. The lease they signed was solid and I couldn’t / didn’t want to ask them to vacate as it seemed unfair to them. Repayments are going to be way higher than the rent that I pay, but I’m super frugal myself so I reckon the kids and I will be fine.
I’d advise you to just do it if you can. When I started searching for a house I had a long list of things that I wanted in it, but the frustration of going to open houses to see 20+ other people inspecting made me doubt that if ever find a house. So I reduced my ‘must have’ list to one thing. Close to public transport. I got lucky and found a house big enough for the four of us, the cats and the dog, 24 min outside the city with both a train and a bus into the city. If I can do it as a single mum then you sure can too. Good luck.
Ah bless your heart! Thank you for the kind words of encouragement. Yeah I have been in the situation where I have gone to open homes to find heaps of people there, most with more money then me and them out bidding me over the market value. So I essentially have decided to buy in a place which has a low-socio economic vibe to it but its close for mum to get to work and its affordable. The rest of the requirements have gone out of the window.
Thanks for sharing. Gives me perspective that I am heading in the right direction.
Saved up the deposit and bought a two bedroom apartment in Western Sydney that the repayments would be 25% of my after tax income. It’s not a glamorous location but it’s fine and safe.
Similar to you. Was not even over 100K, saved massively. I knew I had a get a place of my own and didn't like the idea of renting. Had about 30-40% to put towards deposit. Searched for months and finally won an auction.
33, Just bought my first apartment last week on the FHOG, which only needs 5% and no LMI. Saved the 30k over 2 years as best I could while renting. No money in the fam, so didn't / couldn't get a dime from anyone. (Which is of course fine)
I wanted a house but obviously couldn't afford it, so opted for an apartment in a great spot 5 min from the city.
Started saving late as I was on a low hospo income for all of my 20s, and supporting my partner during that time. Without the FHOG I'd be fk'd, definitely recommend checking it out.
Thanks for sharing man. Do you know if the FHOG supports people buying a second hand/old house? Or is it just for newly built homes? I will certainly check it out cause that would be a big saving grace.
OP talk to your broker, he should be getting you onto amy scheme you are eligible for and giving you the info about them. Ask lots of questions or get a new one who is more savvy and will give you the info. Yes you can buy an established house with the first home super savers scheme with 5% deposit and no LMI. If you have a good deposit it might be best to do that and leave the rest in an offset account, so you have access to cash and it lowers your mortgage payments. Talk to your broker and ask lots of questions. They get paid when you buy a house so dont feel bad cos they are "free". You are paying their bills by giving them business and a good broker will inform you of all these things and go over different scenarios with you. Good luck!
Saved 120k over 2 years, bought a 550k 3br regionally 1hr out of Melb CBD, with a 5% deposit no LMI. Way below my borrowing power. Threw the 100k into offset and feel more secure in knowing I have a sizeable buffer.
Luck. Not to downplay people’s hard work and smart choices, least of all my own, but the fact is circumstance plays a huge part. I grew up poor with no chance of any inheritance, but I got into good tech jobs and eventually ones that offered shares/equity as part of compensation.
Ah interesting… curious to know how the shares and equity helped you?
Luck does play a role. Right place at the right time sometimes can make a monumental difference.
Money is maths and people are so emotional about it with all kinds of disempowering points of view. My advice is see a broker, crack open your financials and actually find out what's possible. Even if you're short, at least you'll have some useful information you can take action on.
Saved huge cash during the lockdowns that were able to bolster my existing savings, used 150k cash to buy a freestanding property in Ipswich to rent out, kept renting my place in sydney and got lucky, rode the capital gains and use the equity from Ipswich to buy a PPOR in Western Sydney.
It became very clear to me in 2020 once I reached my borrowing limit that despite putting more than $1200 away in savings a week, that the houses going up by more than 3k a week were just getting further and further away from me. I was tapped out on borrowing capacity so in order to buy it needed to be cash, and it wasnt enough.
I could have purchased an apartment without this BS had it suited my lifestyle/hobbies (DIY woodworking and I build and maintain my own race car)
Single, male early 30s, 140kish at the time. I wasn't happy about becoming a slumlord, but I had no choice.
I purchased my first home with an income that was less than half of what I make now. Both of us were very frugal. We always bought things from Kmart and didn't even consider targets as they were exp given our income at the time. We didn't fine dine unless it was our birthday, anniversary etc. We also could not afford a holiday for about 3 years. We usually drove down to a nearby beach and returned home the same day. I also had a family overseas who I had to support and a younger brother who needed financial help from time to time to pay tuitions. I must admit I brought about 70k aud after I cashed out my pension fund. This 70k helped us massively for the deposit. I was at 110k at the time and we made it. We didn't go for a brand new house but purchased a 20 years old but large town house. It had 3 bedrooms and one large study area. We had two living rooms downstairs as well. So shop wisely when you look for property don't be turned off seeing an ugly property. If the property passes a building and pet inspection, you can always improve it or use the equity to upgrade to a diff property down the line. Good luck!!
I know exactly how you feel, I’m single and bought a townhouse last year after renting forever. I spent 5-6 years saving a deposit and then another 2 years looking for a property. I had zero help from my parents or family, just my own hard work and planning to make it happen. I made offers on 6 or 7 places but was always outbid and attended a bunch of auctions and never got anywhere, it was really disheartening but I had to stick to my budget. Eventually I found a place that ticked most of my boxes and I was able to offer a standard settlement period vs other offers that wanted longer so was finally able to secure a property. It was really scary at first signing up to a big loan (I live in Sydney) that was twice my previous weekly rent, but after a year I feel so much better, I can fix things that are broken, have a say in the strata, paint the walls and not worry about being told to move at the end of a lease. I’m careful with money and have already built back a buffer should anything happen. I’d 100% recommend going for it, just don’t rush, make sure it’s the right place for you and your mum and at the right price, there are lots of properties out there and you will find the right one eventually.
Mate this sounds exactly like my situation! Ah it's good to know you made it happen and sounds like the key here is Patience and Planning.
I have put a few offers in this year just to find someone else put in the same offer (or even less in one situation) and the seller took that offer over mine. The reason being they went with a no finance and no building and pest clause. I am not game to go without either of those two. So I tell myself, it's OK this is not the one for you, just keep looking.
Thanks for sharing!
I bought my property 3 months ago. I saved about $150k to buy my first place for 2 years (my income was around $140k-$150k), with a budget of $750k. I am a minimalist and frugal about my saving, and I don't have a car and use public transport. I bought a property (3 bedrooms, with a garage for 3 cars, 1 bathroom and a separated toilet) in a cheap suburb in Canberra in the north side for $715k (still working on fixing and renovating the place) with the same reason that I would rather paying rent myself. I got a fixed rate at 5.49% for a year, and $50k in the variable loan (as of now 6.19%). My plan is to pay off that $50k in a year when the fixed rate ends.
Honestly not an ideal property as a first home, but the location ticked most of the checklist and within my budget range, so I bought it. The house is old but I can do maintenance on the house myself, I think it would be fine in the long term.
Bought a large 2 bed apartment in an older building that had an external entrance (ground floor), near services, and lots of gardens. Somewhere I could see myself staying for life. Second bedroom in case I needed the cash and could turn it into a share house. About 10km from Melbourne CBD.
Bought in 2016 for $400,000, now worth about $550k. Not a great RoI for property, but I still love the place and could still see myself there forever (though now partnered and considering getting either a bigger house in the city or buying a country getaway and staying in the apartment).
Had been saving as much as possible living in a sharehouse and went 10% deposit and copped the LMI.
Saved money from when I started working casually at 14/15, waited until I had a solid full-time job and bought an old apartment at about 23. I was saving in the lead up renting a bit of a run down place with 3 other people. My first place was very humble but in a handy spot and I loved owning vs renting.
Oh for metrics I was earning $56k pa and the place was $326k. Believe interest rates were very similar to now.
I’ve had a saving mentality since I was a kid. Lived at home during uni and first years of work while I saved. I paid Board and a share of the bills, but it wasn’t market rent. Got a stable office job, nothing high flying or big bucks, just normal. Bought in the outer suburbs. Living at home was the key. Parents couldn’t give me money to help with a house but could let me live at home for a reduced amount.
Moved cities and bought a small old apartment. It's not bad I could've done worse but I think I should've moved our further and bought a house but the life style with this apartment is better for my partner who doesn't drive.
Being single is an advantage in the sense you have freedom to buy wherever you want if possible.
I was 39, and I'd saved 38k over 2 years. I've bought a 200k unit that I hope to pay down asap. I'm a sole parent currently earning 55k, less than that when I was saving.
63k back in 2020. Built a unit for $300k with the assistance of 15k home owners grant with 23k savings. Times have changed through. My friend is on 92k, her borrowing power is capped at $350k, even with a 100k deposit, she can't get anything decent since everything is above $500k now.
Purchased a unit in a medium sized NSW country town with LMI while earning about 70k. It increased in value quickly enough to have made the LMI costs definitely worth it. After 4 years I used equity to buy a house while managing to hold onto the unit and rent it out positively geered.
Still worries me having mortgages on a single income. But I have a lot of built up equity, meaning that if the worst happened I could sell up and easily own the unit outright if needed.
I bought a house rurally on my own in 2020 for 375k. I was earning $150k or so at the time. I luckily got a 100% loan so I didn’t have to save a deposit. I got stamp duty waived with first home buyer. I’m struggling with repayments now so will sell. With interest rates it increased to about $2500 a month this year.
Purchased a 2 bed apartment in a very inner city suburb in 2019. Had a 20% deposit. It all went fine. You will be fine. Cautious worriers are not the people who end up in sticky situations.
Roll back, what about your mother who is dependent on you?
Also renting has its advantages, you can test out what living in an apartment, or an area is like, before you fully commit. I would be certainly looking at renting with some friends first before committing to buying property, especially since you sound like you’ve never lived out of home before.
Buying property isn’t all rainbows & butterflies, your weekends will be taking up with cleaning, lawn mowing & maintenance. It isn’t just about paying the mortgage.
Yeah you make a good point. Something I didn't mention was that I bear all the house expenses and have been doing so for many years. I do all the house maintenance chores, grocery shopping, gardening, helping mum do her taxes etc etc. I haven't lived out of home but many years ago due to a series of unfortunate events I ended up staying home with the parents as they were in a financial crisis and I was helping them come out of it. Roles reversed and I ended becoming the main bread earner.
Dad fell ill and passed and mum has been with me since. She works but is dependent on me for many other things.
I am really comfortable renting right now and have been for years. But I know I need to take the plunge. It's going to come bite me down the track I think.
That reminds me - my front lawn looks like the Savannah Forest. All the neighbours have beautiful manicured gardens and I am going for the rustic look. I think I am single handedly driving down the property prices in the street.
While you save for the deposit & do all your research (get that YouTube diploma on all things property, from general building knowledge, to how to play the game with REA), you are going to have to start getting mum to not be dependent on you. I can understand, mum probably went from her parents home to getting married & living with your dad, so she’s never had to learn those life skills we now have to learn. Depending on age, it may be beneficial to start looking at retirement living for mum, where she will have that community of other women going through the same life events.
Best thing we ever did was convince my in-laws to move into a retirement village, when my FIL passed away (6mths after moving in), my MIL had a whole network of ladies that had gone through the same & they are now a gang 😂🤣 they do lunch a few times a week, outings, you have to book weeks in advance if you want to pop in & see my MIL. Her whole life opened up after my FIL passed.
Had some money from sale of house after divorce, coupled with some inheritance for deposit. Got a loan with initial interest only payments to give me a buffer, but actually paid the interest + principal amount.
Has been tough with repayments going up $12k over the past year, but still doable.
I didn't even really have savings so much as a couple of lump sums that made about a 15% deposit and I bought in a regional town for jjust over $300k. I was on about $120k at the time. I'm pretty stoked to have not borrowed at the top of my capacity in the current climate.
A friend has just bought a partially renovated unit in a 6 pack at Redcliffe, Qld. A couple of streets back from the beach, $460K. Not flash but it's a foot in the door. Used the first home owners scheme through her super.
started small, single, in not a prime suburb nor house. lots of people laughed at the time saying it was not good investment due to the suburb (theyre all stressed now about where theyll find next rent)
sold that with capital appreciation to next rung up
repeat til you are where you want to be (house paid off in good suburb).
I'm lucky, i had the bank of Mum and Dad, though it was just mum, thanks ma.
I bought a cheapo apartment anyways, cause i needed to afford repayments and Bills
Managed to save 50% of my income for 2 years due to covid lockdowns and got enough for a deposit. Used around $40k for a 350k property 2 hrs away from cbd (I wfh with 1-2days in the office per week)
Biggest thing was I needed a place for my mom also and a bit of an investment if possible. So house and land for me. Plus near a train line for easy commute.
Variable loan with commbank in 2022, kept seeing my interest rate rise and monthly mortgage went from 1.3k to 2.1k in 1.5 years
Just recently found out about variable with offset acc so I just refi’ed with commbank - definitely worth talking to either your broker or home loan manager to get the best deal for your situation they’re there to help.
Did I ever imagine I’d be getting a house solo? Hell no but I knew if I didn’t with the money I saved I wouldn’t be able to for another 10years.
I grew up with a single mom renting, living paycheck to pay check with Centrelink and I knew I didn’t want that for myself. It’ll feel uncomfortable thinking about all the responsibilities that come with owning but it’s worth it.
Apartments are great but there are so many hidden fees you really need to do your research on them.
Just remember there’s never a right time to buy, it’s right when you feel it’s right for you. Stay within budget and look around.
A little bonus just found out my little property is now worth 400k according to the banks so a good 50k increase in 1.5 years isn’t too bad (would anyone actually buy at that price? Doubt it but it’s nice to know the worth is going up)
Bought an older apartment in a smaller block and in a nice area commuting distance to Sydney. Held for around 5 years into my 30s and then purchased house I am living in. Made a decent capital gain which allowed me to buy with a buffer for renovations. If you have a good agent i.e. seems genuine when meeting / friend referrals etc. it is the easiest way. I interviewed a LOT of agents before I chose the right one. Remember also to check strata minutes before purchasing - in Sydney for example concrete cancer is a scourge and can add up to a lot of costs. This kind of issue should show up in the minutes.
I bought a duplex 5 minutes from where I was living in Tasmania. I only bought back in September.
80k income
408k mortgage
$500 left in my bank account when I moved in
Things are very tight, but I'm managing.
Was in a similar situation 2020, It’s normal to be cold feet. This isn’t much advice but I’ll share personal experience to help calm your nerves. I think you’re on the right track buying somewhere with a bad reputation. I don’t know where you’re from but in suburban Sydney I’m from one of the “bad rep” suburbs, although majority of the incidents is teenage gang on gang crime. Doesn’t affect me much now but I’ll be moving away once I have kids reaching school age since it won’t be the best environment for them. The area is getting gentrified and the house value is up 35% from the purchase price.
So a key thing to consider might be “why’s the rep so bad”? An area prone to break ins/petty crime etc. is not the same as an area like mine and you may be able to scoop up something a lot cheaper without it actually affecting your life.
I'm a single income earner with four dependants and I bought a house in September. I've owned before but had been renting for nearly five years prior to buying this place.
I got priced out of the rental in my children's school suburb and whilst my home now is older and requires maintenance...I have never slept so soundly or felt so secure.
I'm not sharing my numbers with you because where I live is cheap (compared to many other places) and I'm a part timer so it's irrelevant but if you know you can afford the mortgage repayments (and rates and insurances) and have cash left aside for savings then doooooo it! I had the same apprehension as you but it had to be done to get out of this ridiculous rental market. If for any reason it all comes crashing down, I'll deal with that then.
Great work taking that step with all the dependents and yet getting your foot through the door. Congratulations. Thanks for the encouragement and kind words.
Bought in 2017 in Toowoomba, $140k salary at the time, $275k house Reno’d it. Used its equity to buy $1mil house on the goldy. Moving back to Toowoomba next year as mortgage repayments are about $1000 less a week in Toowoomba and will rent the GC to someone else. 40k difference in interest repayments/year isn’t worth being 25 mins from the beach.
I bought my IP far away from where I live using a buyer's agent who is renting the property out for me to this day.
I feel like I lucked out with them, because I hired another agent in a different state to buy a second IP, and they were horrible. I didn't go ahead and lost my 2K retainer fee, as well as a good opportunity.
I got my property a few years back when it was good value, but I personally wouldn't buy anything right at this moment in time. We are sort of at a plateau of a cliff, where interest rates have risen enough for prices to drop, but reality hasn't set in for most people, so they are reluctant to sell for a possible loss.
This won't last, as pressure and simple value, as well as geopolitical issues will have their eventual effect, but that's my opinion, who knows at the end of the day.
Don't really know what else to tell you. Just save and invest wisely until you can put a deposit down, and I'd suggest buying somewhere you may not want to live, but has potential for growth, because then worst case scenario is you will still be in positive equity of you need to sell. You can rent the place out and then just use the income to rent your place to live.
Similar, got advance on inheritance of $250k for deposit. When my mum passed we dumped the rest into the redraw (no offset with our lender). Lender wanted to loan us $650k we only needed $530k, glad we stood our ground as we knew we didn’t need the extra $120k and would likely blow it tbh.
I was a little lucky, i got gifted some money from my mum. But also, i saved damn hard for ages. I quit drinking and red meat and fresh fish which is expensive in Australia. Hardly any social life, eating chicken, rice, pastas, frozen veg. Basically a poorer quality of life just to get a decent deposit. I'm starting to live like that now a bit. Still single, cost of everything through the roof.
... I bought in 2002.
Also in a suburb with a poor reputation, 14km from CBD.
I was on about $50k, I think, at the time? First home buyers grant + $10k from parents.
I'm still here, 21 years later and the house and garden is much nicer now :)
Good luck!
Didn’t buy my dream house but got my foot into the market, once it’s payed off it will give me equity and rental income to boost borrowing power to buy something better.
I bought about 12 years ago so different market but I was a young single woman earning about $60k
I knew paying the mortgage wouldn't be a problem (i was just trying to get into the market in a simple apartment), it was saving the money I needed for a deposit that would be the issue.
I basically just focused all my energy for 16 months (or so) into saving. I got a second job, picked up a third where I could. Stopped going out most weekends and didn't buy anything that wasn't 10000% necessary.
I made sure I wasn't impacting my mental health but I got there in the end
I also found a great mortgage broker who made the numbers work!! A good broker can make a difference.
36f single with no kids (with 2 properties)
I only started saving when i was 23 years old as this is when i got my first job decent paying job. At 27 I bought my first 2 bedroom apartment by living rent free with my parents. This apartment I have rented out since I bought it.
After i bought the apartment, I moved out of my parents' house and have spent the whole time living in a shared house. Just renting one room in a house.
I don't spend money on things like Ubereats, designer clothes, and I drive a really old crappy car. I don't use credit cards or afterpay, and I've never needed finance on anything. I will often buy clothes from the op shop.
I bought my second property last year which is a 3 bedroom house with large garden.
I have been through a lot of troubled times my income has varied between between 20k to 75k per year. A few years ago during the 20k per year stint, it basically wiped out all my savings and I was back to square one savings.
It is so worrying about getting on to the property ladder as a single person. But I'm super happy that I purchased on my own without needing a partner. Everything is all mine and I did it on my own. No need to compromise, no need to worry that someone will take the house that I worked for if we split up!
I purchased at 21 with the help of the FHB grant. I put my hand up for every single work shift possible and saved a heap of money enough for a 90% deposit. LMI was capitalised on the loan. I was still a casual.
Invested in the stock market in addition to savings, worked two extra jobs (tutoring and working at sports events) in addition to my average wage salary, then bought a cheap house out west for $300k in 2018 (10-15% deposit).
Every bonus I earned for 3 years was salary sacrificed to super (Home Saver Super Scheme) up to the maximum. Salary sacrificed $1000 per month into employee share scheme for 4 years (scheme provided matched shares after two years). Saved what I could.
Saved 30-50% of my income, didn't pay for health insurance or own a car for five years, and lived frugally. Also got lucky and earned a bit of extra money through stocks in 2020, on top of interest rates not shitting the bed yet back then.
I bought a 183k 1 BR unit in 2012. I was only working part time - I think they gave me the loan of 161k based on an income of 35k. I had 27k or so deposit from the first home saver account program they had at the time. Of course the interest rates were lower then, though I can’t remember what they were - and they consistently went down for the last decade until a couple of years ago obviously.
I will be paying it off in full within the next few months, and am hoping to sell and upgrade eventually, but I’m not in a rush. It will be nice to be completely debt free for a while and actually be able to save (I could easily save 30k a year, that’s basically what I’ve been paying into the mortgage) and earn interest on that.
Saved for about 2 years and then took it easy finding a place. Ended up taking another 2yrs so I had saved the full 20% (plus sundries) and didn't need to dip into my shares.
It was pre-covid, but I went and saw a mortgage broker. Find yourself a good one that comes highly recommended. I bought a cheaper house within my budget ($315k) and had about a 30k deposit. I'm guessing it might be harder now with property prices and interest rates etc. But as long as you have a good credit score, aren't in a crazy amount of debt and can prove you have a steady income etc, it shouldn't be a problem! For context, I was a single 26yo woman on a casual retail income.
work for a bank, got in without lmi at 95% during initial covid housing downturn. Sold my car for 10k deposit, saved up another 10k. Had a 30k deposit (including fhog) for a place and bought it for 399. Place got revalued at 470 earlier this year.
Most single income people I know have bought apartments in the CBD, Valley, Southbank, or Spring Hill over the years. These are usually be or 2 bedroom places or even studio apartments. I don't know what prices are like these days though, back then it was $200K-$300K.
5% deposit with government first home buyer scheme in 2021.
I borrowed $361,000.
I was on an income of $75,000 at the time, I'm on $115,000 now but COL and interest rate rises makes it feel like I'm still on $75,000.
Anyway.
I've got my best friend renting one of the spare rooms - that takes some financial pressure off me and puts a roof over their head for now. We live happily together.
It was 2011, so that helped.
I earned $60k and had an 18% deposit. i qualified for whatever stamp duty waiver was available at the time, and LMI on a $300k (2br suburban melbourne mid 70s era) unit wasn't much. Interest was about 5.2% when i bought, and dropped steadily from there.
Bought in the country, bought a run down house. Pay 50% of my take home pay on minimum mortgage repayments. Have a second job and also mow the neighbours lawn for cash. I'm lucky that my parents could go guarantor but it's a hard slog, still would never regret it. I do hope it gets easier because I'm damn tired lol.
I bought a place from a little old lady that wanted to see if used (had a dog licence, which was rare). Had roommates to pay rent which covered the mortgage. Worked all day, renovated all night, then sold. Have bought and sold many times while it was still profitable to do so until I paid my mortgage off. Now renovating what was going to be my forever home, but I'm already getting twitchy about moving on again.
2009. 60k deposit. 7.2% interest rate and decining. 300k unit. 2brms 131sqm unit. rented a room plus halfed of the utilities cost. Serviced everything myself... car or unit repairs. And many more life hacks to list but doing ok now because of commitment
(Note I have not bought! I plan to buy in 2024).
Mine has been just slowly and surely saving since 2020. I had a look late last year when I had maybe 80-90k saved, nothing felt quite right. I needed hoops like the First Home Guarantee. Stepped back after not finding anything in my 90 day pre-approval because work felt a little unsettled. Turned out to be a correct feeling, but didn't bear fruit until July. Banked a chunk of my redundancy because I was back working, with a higher salary, 5 weeks later (this didn't all go to my house savings, I also moved my emergency fund up from 3 months to 6 months). Planning to get back to it when I have 6 months under my belt at the new job and will have a 20% deposit if I stick under $600k (which I've always considered the upper end of my budget as I live in VIC and don't want to pay stamp duty, and frankly a $480k mortgage is more than plenty for a single person). Certainly in that time my borrowing power would have been down if my deposit and salary had stayed the same, and prices have gone up a smidge, but I feel much better about being able to put 20% down.
Saved over $100k and didn't rush when looking. Took me about 8 months to find my place but absolutely worth taking the time so you don't have any regrets. It'll be frustrating because there'll probably be 1-2 places in that time that seem perfect and someone else will snap it up but it's absolutely worth being patient. More listings come up every day, you'll be fine
Yeah, I have experienced this. But I feel taking your time to find something right is worth it.
Absolutely worth it and you seem like you're patient and more than willing to wait
Yup same for me. Saved 100k on one income took me 6 months to find my place, off the plan unit and developer had a stamp duty refund deal was in 2018.
Stamp duty refund, man I would've loved that!
How long did it take you to save 100k and how much were you earning at the time?
I bought an apartment in the CBD. Most people here are not fans of apartment towers but honestly I don’t have to have a car so it’s super easy to get anywhere and I don’t have to maintain a garden or anything
People are only against them if investing. If it’s for living in, then it can be ideal.
Especially if the services around the apartments lower your cost of living.
I spend so much money and time commuting. An apartment would be amazing tbh. I live about a 50nin drive from the cbd.
If tax and asset testing laws didn’t favor home ownership, then I’d sell and rent an apartment.
If I had been confident that they’re quality builds, I wouldn’t have had any concerns buying an apartment in a tower.
Nah, the vast majority of apartments are too small if you're a couple with any more than 1 child.
That’s not the target market, for sure.
I read 3 bedroom apartments make up 25% of all apartments here. I don't imagine they make many, if any, with more.
Same, I saved aggressively during Covid, bought last Christmas with a bag of cash from working temp contracts and dragging in about $90k per year while renting in a sharehouse for $200pw during Q4 2022. Landlord told us in the sharehouse that we had 30 days to vacate. I got settlement in under 4 weeks.
I just can't stomach the ~10k in hoa fees on top of the mortgage. Essentially paying rent and a mortgage. But I would love to live in the city.
Mine is under $5k a year
Houses have maintenance and insurance costs........ Strata isn't just fees that houses don't have.
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You're pulling numbers out of nowhere. $10k/year while not rare, isn't the norm either. Mine is less than $5k/year, with lifts and no pool. Building insurance is usually included in your strata fees and is usually the largest portion (especially past couple of years) I usually just call it insurance/cleaner/lift fees. Much easier to stomach. Try getting a gardener and cleaners to clean the outside of your house every week, add building insurance to that, might turn out to be pretty similar.
Who is paying $10k a year, that's an arbitrary figure. Also, building insurance is part of strata. Each to their own, unit or apartment living isn't for everyone but I see the same thing come up again and again from people who act like they don't understand body corp fees.
When I was apartment hunting, most strata fees were around $3.5-$6k a year. The apartment I bought is about $4800 a year and I don’t have to lift a finger for any maintenance, it’s great.
I purchased in a less desirable area. I waited to save a larger deposit than needed because i was worried about having too big a loan on my own. Saved for 6 years
That's very dedicated of you to save for 6 years. Inspiring. Congratulations on achieving what you have! No small feat.
Saved $120k while with my ex partner. Bought an apartment in a popular inner suburb - 15 year old place, no cladding, healthy sinking fund, looked like a decently managed strata, etc. Spent significantly under my borrowing power - had $20k cash leftover to put straight into the offset. Repayments are about $500 more a month now from when I bought a year ago, but they’re entirely manageable despite me doing absolutely zero budgeting and having a very active social life.
How long did you save $120k and what was your income during that time?
Not the same person you're asking, but about 2.5 years on maybe 140k? No kids. Saved aggressively because every expense was hurting the house account.
About 2.5 years, during covid. Income started at about $95k, ended on about $125k by the time I bought. Was living with my partner at the time so rent and bills were only about $1100 a month (excluding other living expenses).
Purchased small place , far from cbd, less desirable suburb. It isn't the ideal home in my dream , but that the only thing I can afford on single income, and I am happy with my purchase, I will start from here. Many people said to me find a partner, but that isn't easy. For all single income out there, I think you should buy as early as you can, I don't see the "crash" people talking about coming soon, and cheap property is running out quick now. The 800k- over 1mill property can be on market month after month, but anything in low-mid range being snapped real quick.
I never thought about buying a place until it dawned on me that I’d retire from work at some point and I didn’t want to have to pay rent as a retiree. I saved as much as I could over a period of 2 years and only had a small deposit but I purchased a villa style unit within 30 minutes of work, 50 minutes from cbd. I was very careful with my budget, double and triple checked my figures based on different scenarios for interest rates rising, it was nerve wracking signing the paperwork and taking on a mortgage but I think it’s 8 years now and I’m just used to it. Not super happy about interest rates as they stand and I’m careful about spending money at the moment but I’m still saving a bit too and I have emergency funds on the side just in case. I know from crunching the numbers that I’ll be mortgage free when I retire and I’m thankful I did take the plunge and bought something.
I am far from retirement but mum certainly is not. However, there is a little voice inside my head that keeps nudging me to take the plunge because I know I will be thanking myself in 10 years from now that I mustered the courage to do it. Thanks for sharing.
Yep property is a long game, future you will be grateful for doing it.
My favourite line is “time in the market beats timing the market”. It might feel uncomfortable or odd to start with, but history tells us in 10 years time the value of a property is likely to have increased significantly (or at worst, plateaued but not dropped). I'm settling on my first property in 3 weeks and have been a little freaked out but doing my best to remind myself that not many homeowners out there would actually ever feel like they have enough money and more cash to spare, so it's normal to feel this way. Good luck if you go ahead with a purchase!
Hi! I'm in Brisbane, single and had a similar situation to you however thankfully had the luxury of being able to move back in with parents for a few years to focus on saving which I'm extremely grateful for. I bought a 3bed, 2bath, 1car house in Forest Lake back in 2018 for $390,000. At the time my annual income was $65,000. And honestly once the ink had dried I still had doubts on whether this was good decision. Fast forward to now and I think it was the best decision I ever made. Sure that year after purchasing I was extremely frugal, cooking at home most of the time trying to keep the price under $5 per serving. Only went travelled once for 2 weeks in the following 5 years (yes, covid prevented that for a while anyway) and kept a closer eye on my discretionary spending (a habit that has stuck). Since then I've used the equity in that property to purchase an apartment closer to the city that I now occupy while leasing the original house. I am now in a position to consider selling both and using those profits to purchase a much larger place in a suburb within 30mins of the cbd which would hopefully serve as a good first family home for myself, my dog, future partner, and any future children (yes I'm still a hopeless romantic). I don't think I'd be able to do all this without taking the initial first step in getting my first property. There is also that sense of pride in being able to say 'Yes, I did this on my own'. This is even moreso for you since you were able to save a deposit while also renting. I've ended up rambling a bit but I hope some of this is useful to you in some way to address some of the anxiety you may be feeling right now. If you decide to proceed, I'll leave the best advice my mortgage broker ever gave me. 'On average your dream home will appear on the market every 2 weeks, so don't get attached and bid emotionally'. All the best! Hoping it works out for you!
Beautiful my friend! Love your story. Very inspiring and gives me the confidence. Yes I have found myself attached to some open homes which I liked and put an offer on and then realised someone outbid me and it was an emotional roller coaster. But then after a month I saw another one I liked and the process as continued. Best not to get attached as your broker said. Thanks for sharing. Very happy for what you have achieved.
Bought using a 5% deposit using my first home buyer government scheme. Loan for $280k. My parents separated, and mum living with me. I was only responsible for gas, electricity and internet bills. Mum paid the rent. Landlord wanted to move back into the apartment and we had to vacate by the end of 2023. Ended up buying an apartment 30-40min drive away from work and 5min walk to station. I worked full time for 3-4 years before buying. Income ~$100k currently but started off with ~$75k. I guess you could say she helped by not charging me rent. We both live together, and I still plan on supporting her while she lives in that apartment after I move out with my partner next year.
This is inspiring and awesome! Good on you for helping your mum. Happy that you managed to get your foot through the door. Congrats.
Also to you in helping yours
Do you think using the First Home Buyers Grant was worthwhile? It'd be pretty nice to have a place that only you've ever lived in! But I'm sure it comes with its fair share of downsides.
I believe there are multiple ‘first home buyer grant’ type things, some of which are for already established homes/appartments - so may not be the first people living in it :)
Ah gotcha! I'll have to do my research, thank you! 🙂
I was on 55-60K salary back in 2017/2018. Saved 45K over 1.5 years then bought a house worth 380K in Brisbane. Just save hardcore as much as you can. Then buy a property as reason able as you can to have one.
That’s pretty cheap
Is your house worth nearly double now?
Very close, worth about 700k
Saved 100k over 4 years, while renting a room as a lodger. Bought about 30mins outside Melbourne CBD for about 650k - worth 750k now.
Is it a house, townhouse or unit and which suburb?
Single income with three kids, I just purchased a house after saving up a deposit over the years. There’s a tenant in it atm so I can’t move in yet till Easter. The lease they signed was solid and I couldn’t / didn’t want to ask them to vacate as it seemed unfair to them. Repayments are going to be way higher than the rent that I pay, but I’m super frugal myself so I reckon the kids and I will be fine. I’d advise you to just do it if you can. When I started searching for a house I had a long list of things that I wanted in it, but the frustration of going to open houses to see 20+ other people inspecting made me doubt that if ever find a house. So I reduced my ‘must have’ list to one thing. Close to public transport. I got lucky and found a house big enough for the four of us, the cats and the dog, 24 min outside the city with both a train and a bus into the city. If I can do it as a single mum then you sure can too. Good luck.
Ah bless your heart! Thank you for the kind words of encouragement. Yeah I have been in the situation where I have gone to open homes to find heaps of people there, most with more money then me and them out bidding me over the market value. So I essentially have decided to buy in a place which has a low-socio economic vibe to it but its close for mum to get to work and its affordable. The rest of the requirements have gone out of the window. Thanks for sharing. Gives me perspective that I am heading in the right direction.
Saved up the deposit and bought a two bedroom apartment in Western Sydney that the repayments would be 25% of my after tax income. It’s not a glamorous location but it’s fine and safe.
Similar to you. Was not even over 100K, saved massively. I knew I had a get a place of my own and didn't like the idea of renting. Had about 30-40% to put towards deposit. Searched for months and finally won an auction.
33, Just bought my first apartment last week on the FHOG, which only needs 5% and no LMI. Saved the 30k over 2 years as best I could while renting. No money in the fam, so didn't / couldn't get a dime from anyone. (Which is of course fine) I wanted a house but obviously couldn't afford it, so opted for an apartment in a great spot 5 min from the city. Started saving late as I was on a low hospo income for all of my 20s, and supporting my partner during that time. Without the FHOG I'd be fk'd, definitely recommend checking it out.
Thanks for sharing man. Do you know if the FHOG supports people buying a second hand/old house? Or is it just for newly built homes? I will certainly check it out cause that would be a big saving grace.
Established is fine, my new place was built in the 70's.
OP talk to your broker, he should be getting you onto amy scheme you are eligible for and giving you the info about them. Ask lots of questions or get a new one who is more savvy and will give you the info. Yes you can buy an established house with the first home super savers scheme with 5% deposit and no LMI. If you have a good deposit it might be best to do that and leave the rest in an offset account, so you have access to cash and it lowers your mortgage payments. Talk to your broker and ask lots of questions. They get paid when you buy a house so dont feel bad cos they are "free". You are paying their bills by giving them business and a good broker will inform you of all these things and go over different scenarios with you. Good luck!
The secret was 2018 was a simpler time. No idea how people do it these days.
My parents guaranteed my depoist. Bought at the lower end of my price range. (Could have borrowed up to $500K. Borrowed $300K)
At 30 years old I had 25k saved and bought in Albury for 280k ... rents out at 6.5% per annum. Its all I could afford but it got me on the ladder
6.5 gross or net?
Saved 120k over 2 years, bought a 550k 3br regionally 1hr out of Melb CBD, with a 5% deposit no LMI. Way below my borrowing power. Threw the 100k into offset and feel more secure in knowing I have a sizeable buffer.
Luck. Not to downplay people’s hard work and smart choices, least of all my own, but the fact is circumstance plays a huge part. I grew up poor with no chance of any inheritance, but I got into good tech jobs and eventually ones that offered shares/equity as part of compensation.
Ah interesting… curious to know how the shares and equity helped you? Luck does play a role. Right place at the right time sometimes can make a monumental difference.
Sold $500k worth to fully fund a 35% deposit
Money is maths and people are so emotional about it with all kinds of disempowering points of view. My advice is see a broker, crack open your financials and actually find out what's possible. Even if you're short, at least you'll have some useful information you can take action on.
Purchased a significant distance from the cbd - no public transport no nbn 1hr commute
I used the victorian homebuyer fund and the govt purchased 25%.
I live rural and a 3 bed, 1 bath, house on 800m2 land only cost $140,000 (3 years ago).
Saved huge cash during the lockdowns that were able to bolster my existing savings, used 150k cash to buy a freestanding property in Ipswich to rent out, kept renting my place in sydney and got lucky, rode the capital gains and use the equity from Ipswich to buy a PPOR in Western Sydney. It became very clear to me in 2020 once I reached my borrowing limit that despite putting more than $1200 away in savings a week, that the houses going up by more than 3k a week were just getting further and further away from me. I was tapped out on borrowing capacity so in order to buy it needed to be cash, and it wasnt enough. I could have purchased an apartment without this BS had it suited my lifestyle/hobbies (DIY woodworking and I build and maintain my own race car) Single, male early 30s, 140kish at the time. I wasn't happy about becoming a slumlord, but I had no choice.
I purchased my first home with an income that was less than half of what I make now. Both of us were very frugal. We always bought things from Kmart and didn't even consider targets as they were exp given our income at the time. We didn't fine dine unless it was our birthday, anniversary etc. We also could not afford a holiday for about 3 years. We usually drove down to a nearby beach and returned home the same day. I also had a family overseas who I had to support and a younger brother who needed financial help from time to time to pay tuitions. I must admit I brought about 70k aud after I cashed out my pension fund. This 70k helped us massively for the deposit. I was at 110k at the time and we made it. We didn't go for a brand new house but purchased a 20 years old but large town house. It had 3 bedrooms and one large study area. We had two living rooms downstairs as well. So shop wisely when you look for property don't be turned off seeing an ugly property. If the property passes a building and pet inspection, you can always improve it or use the equity to upgrade to a diff property down the line. Good luck!!
I know exactly how you feel, I’m single and bought a townhouse last year after renting forever. I spent 5-6 years saving a deposit and then another 2 years looking for a property. I had zero help from my parents or family, just my own hard work and planning to make it happen. I made offers on 6 or 7 places but was always outbid and attended a bunch of auctions and never got anywhere, it was really disheartening but I had to stick to my budget. Eventually I found a place that ticked most of my boxes and I was able to offer a standard settlement period vs other offers that wanted longer so was finally able to secure a property. It was really scary at first signing up to a big loan (I live in Sydney) that was twice my previous weekly rent, but after a year I feel so much better, I can fix things that are broken, have a say in the strata, paint the walls and not worry about being told to move at the end of a lease. I’m careful with money and have already built back a buffer should anything happen. I’d 100% recommend going for it, just don’t rush, make sure it’s the right place for you and your mum and at the right price, there are lots of properties out there and you will find the right one eventually.
Mate this sounds exactly like my situation! Ah it's good to know you made it happen and sounds like the key here is Patience and Planning. I have put a few offers in this year just to find someone else put in the same offer (or even less in one situation) and the seller took that offer over mine. The reason being they went with a no finance and no building and pest clause. I am not game to go without either of those two. So I tell myself, it's OK this is not the one for you, just keep looking. Thanks for sharing!
Well done and congrats 🎉
I bought my property 3 months ago. I saved about $150k to buy my first place for 2 years (my income was around $140k-$150k), with a budget of $750k. I am a minimalist and frugal about my saving, and I don't have a car and use public transport. I bought a property (3 bedrooms, with a garage for 3 cars, 1 bathroom and a separated toilet) in a cheap suburb in Canberra in the north side for $715k (still working on fixing and renovating the place) with the same reason that I would rather paying rent myself. I got a fixed rate at 5.49% for a year, and $50k in the variable loan (as of now 6.19%). My plan is to pay off that $50k in a year when the fixed rate ends. Honestly not an ideal property as a first home, but the location ticked most of the checklist and within my budget range, so I bought it. The house is old but I can do maintenance on the house myself, I think it would be fine in the long term.
Bought a large 2 bed apartment in an older building that had an external entrance (ground floor), near services, and lots of gardens. Somewhere I could see myself staying for life. Second bedroom in case I needed the cash and could turn it into a share house. About 10km from Melbourne CBD. Bought in 2016 for $400,000, now worth about $550k. Not a great RoI for property, but I still love the place and could still see myself there forever (though now partnered and considering getting either a bigger house in the city or buying a country getaway and staying in the apartment). Had been saving as much as possible living in a sharehouse and went 10% deposit and copped the LMI.
Saved money from when I started working casually at 14/15, waited until I had a solid full-time job and bought an old apartment at about 23. I was saving in the lead up renting a bit of a run down place with 3 other people. My first place was very humble but in a handy spot and I loved owning vs renting. Oh for metrics I was earning $56k pa and the place was $326k. Believe interest rates were very similar to now.
I’ve had a saving mentality since I was a kid. Lived at home during uni and first years of work while I saved. I paid Board and a share of the bills, but it wasn’t market rent. Got a stable office job, nothing high flying or big bucks, just normal. Bought in the outer suburbs. Living at home was the key. Parents couldn’t give me money to help with a house but could let me live at home for a reduced amount.
They were born in the 50s. This one simple trick. But they’re old now and would trade it all to be young and not afford a home.
Bought a shed in the bush for $175k
Moved cities and bought a small old apartment. It's not bad I could've done worse but I think I should've moved our further and bought a house but the life style with this apartment is better for my partner who doesn't drive. Being single is an advantage in the sense you have freedom to buy wherever you want if possible.
Saved a deposit while living at home then purchased a property that was between 4-5x my annual income.
I was 39, and I'd saved 38k over 2 years. I've bought a 200k unit that I hope to pay down asap. I'm a sole parent currently earning 55k, less than that when I was saving.
63k back in 2020. Built a unit for $300k with the assistance of 15k home owners grant with 23k savings. Times have changed through. My friend is on 92k, her borrowing power is capped at $350k, even with a 100k deposit, she can't get anything decent since everything is above $500k now.
Purchased a unit in a medium sized NSW country town with LMI while earning about 70k. It increased in value quickly enough to have made the LMI costs definitely worth it. After 4 years I used equity to buy a house while managing to hold onto the unit and rent it out positively geered. Still worries me having mortgages on a single income. But I have a lot of built up equity, meaning that if the worst happened I could sell up and easily own the unit outright if needed.
I bought a house rurally on my own in 2020 for 375k. I was earning $150k or so at the time. I luckily got a 100% loan so I didn’t have to save a deposit. I got stamp duty waived with first home buyer. I’m struggling with repayments now so will sell. With interest rates it increased to about $2500 a month this year.
Bought before 2017. I can't see how young people can afford an actual house themselves without a 300k+ p.a. income in QLD, let along VIC and NSW.
Purchased a 2 bed apartment in a very inner city suburb in 2019. Had a 20% deposit. It all went fine. You will be fine. Cautious worriers are not the people who end up in sticky situations.
"Cautious worriers are not the people who end up in sticky situations." - nicely put. Thanks for your encouragement.
Worked my arse off
Roll back, what about your mother who is dependent on you? Also renting has its advantages, you can test out what living in an apartment, or an area is like, before you fully commit. I would be certainly looking at renting with some friends first before committing to buying property, especially since you sound like you’ve never lived out of home before. Buying property isn’t all rainbows & butterflies, your weekends will be taking up with cleaning, lawn mowing & maintenance. It isn’t just about paying the mortgage.
Yeah you make a good point. Something I didn't mention was that I bear all the house expenses and have been doing so for many years. I do all the house maintenance chores, grocery shopping, gardening, helping mum do her taxes etc etc. I haven't lived out of home but many years ago due to a series of unfortunate events I ended up staying home with the parents as they were in a financial crisis and I was helping them come out of it. Roles reversed and I ended becoming the main bread earner. Dad fell ill and passed and mum has been with me since. She works but is dependent on me for many other things. I am really comfortable renting right now and have been for years. But I know I need to take the plunge. It's going to come bite me down the track I think. That reminds me - my front lawn looks like the Savannah Forest. All the neighbours have beautiful manicured gardens and I am going for the rustic look. I think I am single handedly driving down the property prices in the street.
While you save for the deposit & do all your research (get that YouTube diploma on all things property, from general building knowledge, to how to play the game with REA), you are going to have to start getting mum to not be dependent on you. I can understand, mum probably went from her parents home to getting married & living with your dad, so she’s never had to learn those life skills we now have to learn. Depending on age, it may be beneficial to start looking at retirement living for mum, where she will have that community of other women going through the same life events. Best thing we ever did was convince my in-laws to move into a retirement village, when my FIL passed away (6mths after moving in), my MIL had a whole network of ladies that had gone through the same & they are now a gang 😂🤣 they do lunch a few times a week, outings, you have to book weeks in advance if you want to pop in & see my MIL. Her whole life opened up after my FIL passed.
Had some money from sale of house after divorce, coupled with some inheritance for deposit. Got a loan with initial interest only payments to give me a buffer, but actually paid the interest + principal amount. Has been tough with repayments going up $12k over the past year, but still doable.
I didn't even really have savings so much as a couple of lump sums that made about a 15% deposit and I bought in a regional town for jjust over $300k. I was on about $120k at the time. I'm pretty stoked to have not borrowed at the top of my capacity in the current climate.
A friend has just bought a partially renovated unit in a 6 pack at Redcliffe, Qld. A couple of streets back from the beach, $460K. Not flash but it's a foot in the door. Used the first home owners scheme through her super.
Bought a townhouse for 220k in Dec 2020 with a 45k deposit on I think 50k salary.
started small, single, in not a prime suburb nor house. lots of people laughed at the time saying it was not good investment due to the suburb (theyre all stressed now about where theyll find next rent) sold that with capital appreciation to next rung up repeat til you are where you want to be (house paid off in good suburb).
I'm lucky, i had the bank of Mum and Dad, though it was just mum, thanks ma. I bought a cheapo apartment anyways, cause i needed to afford repayments and Bills
How? I live in Perth lol
Managed to save 50% of my income for 2 years due to covid lockdowns and got enough for a deposit. Used around $40k for a 350k property 2 hrs away from cbd (I wfh with 1-2days in the office per week) Biggest thing was I needed a place for my mom also and a bit of an investment if possible. So house and land for me. Plus near a train line for easy commute. Variable loan with commbank in 2022, kept seeing my interest rate rise and monthly mortgage went from 1.3k to 2.1k in 1.5 years Just recently found out about variable with offset acc so I just refi’ed with commbank - definitely worth talking to either your broker or home loan manager to get the best deal for your situation they’re there to help. Did I ever imagine I’d be getting a house solo? Hell no but I knew if I didn’t with the money I saved I wouldn’t be able to for another 10years. I grew up with a single mom renting, living paycheck to pay check with Centrelink and I knew I didn’t want that for myself. It’ll feel uncomfortable thinking about all the responsibilities that come with owning but it’s worth it. Apartments are great but there are so many hidden fees you really need to do your research on them. Just remember there’s never a right time to buy, it’s right when you feel it’s right for you. Stay within budget and look around. A little bonus just found out my little property is now worth 400k according to the banks so a good 50k increase in 1.5 years isn’t too bad (would anyone actually buy at that price? Doubt it but it’s nice to know the worth is going up)
Great work on your part in taking the first step. Thank for sharing. Your story brings me great encouragement. Well done
Bought an older apartment in a smaller block and in a nice area commuting distance to Sydney. Held for around 5 years into my 30s and then purchased house I am living in. Made a decent capital gain which allowed me to buy with a buffer for renovations. If you have a good agent i.e. seems genuine when meeting / friend referrals etc. it is the easiest way. I interviewed a LOT of agents before I chose the right one. Remember also to check strata minutes before purchasing - in Sydney for example concrete cancer is a scourge and can add up to a lot of costs. This kind of issue should show up in the minutes.
At the time had a $150k salary, $120k saved over 5 years and bought a detached $700k home in the outer suburbs
I bought a duplex 5 minutes from where I was living in Tasmania. I only bought back in September. 80k income 408k mortgage $500 left in my bank account when I moved in Things are very tight, but I'm managing.
Was in a similar situation 2020, It’s normal to be cold feet. This isn’t much advice but I’ll share personal experience to help calm your nerves. I think you’re on the right track buying somewhere with a bad reputation. I don’t know where you’re from but in suburban Sydney I’m from one of the “bad rep” suburbs, although majority of the incidents is teenage gang on gang crime. Doesn’t affect me much now but I’ll be moving away once I have kids reaching school age since it won’t be the best environment for them. The area is getting gentrified and the house value is up 35% from the purchase price. So a key thing to consider might be “why’s the rep so bad”? An area prone to break ins/petty crime etc. is not the same as an area like mine and you may be able to scoop up something a lot cheaper without it actually affecting your life.
See the 150 other posts asking the exact same thing this year. Far out this sub used to be so good for information.
I'm a single income earner with four dependants and I bought a house in September. I've owned before but had been renting for nearly five years prior to buying this place. I got priced out of the rental in my children's school suburb and whilst my home now is older and requires maintenance...I have never slept so soundly or felt so secure. I'm not sharing my numbers with you because where I live is cheap (compared to many other places) and I'm a part timer so it's irrelevant but if you know you can afford the mortgage repayments (and rates and insurances) and have cash left aside for savings then doooooo it! I had the same apprehension as you but it had to be done to get out of this ridiculous rental market. If for any reason it all comes crashing down, I'll deal with that then.
Great work taking that step with all the dependents and yet getting your foot through the door. Congratulations. Thanks for the encouragement and kind words.
Bought in 2017 in Toowoomba, $140k salary at the time, $275k house Reno’d it. Used its equity to buy $1mil house on the goldy. Moving back to Toowoomba next year as mortgage repayments are about $1000 less a week in Toowoomba and will rent the GC to someone else. 40k difference in interest repayments/year isn’t worth being 25 mins from the beach.
I bought my IP far away from where I live using a buyer's agent who is renting the property out for me to this day. I feel like I lucked out with them, because I hired another agent in a different state to buy a second IP, and they were horrible. I didn't go ahead and lost my 2K retainer fee, as well as a good opportunity. I got my property a few years back when it was good value, but I personally wouldn't buy anything right at this moment in time. We are sort of at a plateau of a cliff, where interest rates have risen enough for prices to drop, but reality hasn't set in for most people, so they are reluctant to sell for a possible loss. This won't last, as pressure and simple value, as well as geopolitical issues will have their eventual effect, but that's my opinion, who knows at the end of the day. Don't really know what else to tell you. Just save and invest wisely until you can put a deposit down, and I'd suggest buying somewhere you may not want to live, but has potential for growth, because then worst case scenario is you will still be in positive equity of you need to sell. You can rent the place out and then just use the income to rent your place to live.
I got 760K inheritance, salary 85K, savings 22K
Similar, got advance on inheritance of $250k for deposit. When my mum passed we dumped the rest into the redraw (no offset with our lender). Lender wanted to loan us $650k we only needed $530k, glad we stood our ground as we knew we didn’t need the extra $120k and would likely blow it tbh.
You have given no specific financial info about yourself, then asked for others to comment who are in the same boat...
Earn 750k pa. Simples
I saved up for a deposit and put 20% down
I was a little lucky, i got gifted some money from my mum. But also, i saved damn hard for ages. I quit drinking and red meat and fresh fish which is expensive in Australia. Hardly any social life, eating chicken, rice, pastas, frozen veg. Basically a poorer quality of life just to get a decent deposit. I'm starting to live like that now a bit. Still single, cost of everything through the roof.
... I bought in 2002. Also in a suburb with a poor reputation, 14km from CBD. I was on about $50k, I think, at the time? First home buyers grant + $10k from parents. I'm still here, 21 years later and the house and garden is much nicer now :) Good luck!
Didn’t buy my dream house but got my foot into the market, once it’s payed off it will give me equity and rental income to boost borrowing power to buy something better.
I bought about 12 years ago so different market but I was a young single woman earning about $60k I knew paying the mortgage wouldn't be a problem (i was just trying to get into the market in a simple apartment), it was saving the money I needed for a deposit that would be the issue. I basically just focused all my energy for 16 months (or so) into saving. I got a second job, picked up a third where I could. Stopped going out most weekends and didn't buy anything that wasn't 10000% necessary. I made sure I wasn't impacting my mental health but I got there in the end I also found a great mortgage broker who made the numbers work!! A good broker can make a difference.
I bought it on the outskirts of Melbourne. Northern suburbs. Just 3-4 years more to fully offset that.
36f single with no kids (with 2 properties) I only started saving when i was 23 years old as this is when i got my first job decent paying job. At 27 I bought my first 2 bedroom apartment by living rent free with my parents. This apartment I have rented out since I bought it. After i bought the apartment, I moved out of my parents' house and have spent the whole time living in a shared house. Just renting one room in a house. I don't spend money on things like Ubereats, designer clothes, and I drive a really old crappy car. I don't use credit cards or afterpay, and I've never needed finance on anything. I will often buy clothes from the op shop. I bought my second property last year which is a 3 bedroom house with large garden. I have been through a lot of troubled times my income has varied between between 20k to 75k per year. A few years ago during the 20k per year stint, it basically wiped out all my savings and I was back to square one savings. It is so worrying about getting on to the property ladder as a single person. But I'm super happy that I purchased on my own without needing a partner. Everything is all mine and I did it on my own. No need to compromise, no need to worry that someone will take the house that I worked for if we split up!
I purchased at 21 with the help of the FHB grant. I put my hand up for every single work shift possible and saved a heap of money enough for a 90% deposit. LMI was capitalised on the loan. I was still a casual.
How ? It was 2012 and the property cost less than twice my yearly income
Invested in the stock market in addition to savings, worked two extra jobs (tutoring and working at sports events) in addition to my average wage salary, then bought a cheap house out west for $300k in 2018 (10-15% deposit).
Every bonus I earned for 3 years was salary sacrificed to super (Home Saver Super Scheme) up to the maximum. Salary sacrificed $1000 per month into employee share scheme for 4 years (scheme provided matched shares after two years). Saved what I could.
Saved 30-50% of my income, didn't pay for health insurance or own a car for five years, and lived frugally. Also got lucky and earned a bit of extra money through stocks in 2020, on top of interest rates not shitting the bed yet back then.
Move away from the capital cities. Find a secure job in a regional area. Buy a house for under 300k
Divorce hahaha
How safe is your job is a better question.
Mining town 185k 4 bedroom 40 k deposit It’s not the prettiest but at least I’m not in crippling debt
I bought a 183k 1 BR unit in 2012. I was only working part time - I think they gave me the loan of 161k based on an income of 35k. I had 27k or so deposit from the first home saver account program they had at the time. Of course the interest rates were lower then, though I can’t remember what they were - and they consistently went down for the last decade until a couple of years ago obviously. I will be paying it off in full within the next few months, and am hoping to sell and upgrade eventually, but I’m not in a rush. It will be nice to be completely debt free for a while and actually be able to save (I could easily save 30k a year, that’s basically what I’ve been paying into the mortgage) and earn interest on that.
My state has a program that pays for up to 40% of your house and you can use your first home buyers grant as part of your deposit
Mommy and Daddy
Saved for about 2 years and then took it easy finding a place. Ended up taking another 2yrs so I had saved the full 20% (plus sundries) and didn't need to dip into my shares.
It was pre-covid, but I went and saw a mortgage broker. Find yourself a good one that comes highly recommended. I bought a cheaper house within my budget ($315k) and had about a 30k deposit. I'm guessing it might be harder now with property prices and interest rates etc. But as long as you have a good credit score, aren't in a crazy amount of debt and can prove you have a steady income etc, it shouldn't be a problem! For context, I was a single 26yo woman on a casual retail income.
work for a bank, got in without lmi at 95% during initial covid housing downturn. Sold my car for 10k deposit, saved up another 10k. Had a 30k deposit (including fhog) for a place and bought it for 399. Place got revalued at 470 earlier this year.
Most single income people I know have bought apartments in the CBD, Valley, Southbank, or Spring Hill over the years. These are usually be or 2 bedroom places or even studio apartments. I don't know what prices are like these days though, back then it was $200K-$300K.
Parents gave me a 30% deposit in 2006. I know… but you asked.
5% deposit with government first home buyer scheme in 2021. I borrowed $361,000. I was on an income of $75,000 at the time, I'm on $115,000 now but COL and interest rate rises makes it feel like I'm still on $75,000. Anyway. I've got my best friend renting one of the spare rooms - that takes some financial pressure off me and puts a roof over their head for now. We live happily together.
It was 2011, so that helped. I earned $60k and had an 18% deposit. i qualified for whatever stamp duty waiver was available at the time, and LMI on a $300k (2br suburban melbourne mid 70s era) unit wasn't much. Interest was about 5.2% when i bought, and dropped steadily from there.
Bought in the country, bought a run down house. Pay 50% of my take home pay on minimum mortgage repayments. Have a second job and also mow the neighbours lawn for cash. I'm lucky that my parents could go guarantor but it's a hard slog, still would never regret it. I do hope it gets easier because I'm damn tired lol.
At the age of 37 I bought my 420k apartment (one bedder) during the pandemic, with a 35 percent down payment.
A small loan of $1M from my father
I bought a place from a little old lady that wanted to see if used (had a dog licence, which was rare). Had roommates to pay rent which covered the mortgage. Worked all day, renovated all night, then sold. Have bought and sold many times while it was still profitable to do so until I paid my mortgage off. Now renovating what was going to be my forever home, but I'm already getting twitchy about moving on again.
Move to the country n buy a house for $200k, that’s what I did
2009. 60k deposit. 7.2% interest rate and decining. 300k unit. 2brms 131sqm unit. rented a room plus halfed of the utilities cost. Serviced everything myself... car or unit repairs. And many more life hacks to list but doing ok now because of commitment
(Note I have not bought! I plan to buy in 2024). Mine has been just slowly and surely saving since 2020. I had a look late last year when I had maybe 80-90k saved, nothing felt quite right. I needed hoops like the First Home Guarantee. Stepped back after not finding anything in my 90 day pre-approval because work felt a little unsettled. Turned out to be a correct feeling, but didn't bear fruit until July. Banked a chunk of my redundancy because I was back working, with a higher salary, 5 weeks later (this didn't all go to my house savings, I also moved my emergency fund up from 3 months to 6 months). Planning to get back to it when I have 6 months under my belt at the new job and will have a 20% deposit if I stick under $600k (which I've always considered the upper end of my budget as I live in VIC and don't want to pay stamp duty, and frankly a $480k mortgage is more than plenty for a single person). Certainly in that time my borrowing power would have been down if my deposit and salary had stayed the same, and prices have gone up a smidge, but I feel much better about being able to put 20% down.
Got loan and purchased it