How Millennials and Gen Z Can Get Into the Property Market
For many millennials and Gen Z, the dream of homeownership can seem just out of reach. Housing prices have soared while incomes have struggled to keep up, leaving many wondering how they’ll ever save enough for a deposit, let alone afford a home. But despite these challenges, there are actionable strategies that can help you get on the property ladder.
In this episode of the Home Buyers Australia podcast, Jack Corbett from Corbett Property Buyers and Damien Walker from Atelier Wealth Mortgage Brokers share insights and practical tips for millennials and Gen Z who are ready to make their first move into the property market. Here’s what they recommend:
1. It All Starts with Income: Increase Your Earning Power
A common challenge for first-home buyers is saving for that initial deposit. While cutting back on everyday expenses can certainly help, Jack and Damien emphasise that the real key is focusing on increasing your income. It’s essential to invest in yourself—whether through education, upskilling, or gaining mastery in your profession. The goal is to become more valuable in the workforce, which, in turn, can lead to higher earnings.
As Damien says, “It’s easier to earn more money than to cut back on spending, and there’s often more room for income growth than for further reducing your expenses.” Whether it’s negotiating a raise, taking on a side hustle, or mastering a trade, increasing your income opens the door to both saving faster and qualifying for a larger loan.
Practical Tips:
- Invest in Professional Development: Take advantage of government-funded courses or certifications that will increase your earning potential.
- Side Hustles: Freelancing or part-time work in fields like graphic design, tutoring, or consulting can bring in extra income.
- Explore Remote Work: Many companies are offering remote jobs that pay more than local roles—especially in tech, digital marketing, or consulting.
2. Plan Your Savings: Set Realistic, Achievable Goals
It’s one thing to say you’re going to save for a deposit, but without a solid plan in place, it’s easy to get off track. Damien suggests starting with a clear goal and working backward. Decide on a realistic timeframe for when you want to buy, and break down how much you need to save monthly to hit that target.
However, one thing Jack and Damien highlight is that you don’t have to reach the traditional 20% deposit threshold. The reality of today’s market is that many buyers are getting into homes with lower deposits, thanks to government incentives like the First Home Guarantee Scheme.
3. Creative Ways to Save: Reducing Expenses without Sacrificing Too Much
Saving for a deposit isn’t easy, and sometimes it feels like you’re swimming against the tide. But there are creative ways to boost your savings and reduce expenses, making that dream of homeownership more achievable. Jack emphasises the importance of keeping lifestyle expenses in check, especially as you start to earn more.
For example, share housing can help cut costs significantly. “Living with roommates or staying with your parents rent-free can fast-track your savings,” says Jack. He mentions that he spent 12 years in share housing, which allowed him to save much faster than if he’d rented solo.
If you have supportive parents, moving back home for a short period can also be a game-changer. It may not be glamorous, but it’s a small sacrifice that can make a huge difference in the long run.
Practical Tips:
- House Share: Sharing a rental with friends or siblings is not only cost-effective, but it can also be fun.
- Granny Flats: Consider renting a granny flat or a smaller space with lower rent if living alone is important to you.
- Monitor Subscriptions: Keep track of recurring payments (like streaming services) and cut unnecessary ones. Try free tools like Moneysmart to track and manage subscriptions.
Get in Touch
Ready to take the next step? Contact Corbett Property Buyers for expert guidance in navigating the property market, and reach out to Atelier Wealth for tailored mortgage solutions that suit your financial goals. Your journey to homeownership starts here!
For more tips and insights, tune in to the Home Buyers Australia Podcast on Spotify and Apple Podcasts.