Millennials, This Is How Long It’ll Take You To Save For A House Deposit.
It’s no secret that housing affordability has tightened over the past 15 years and this trend is likely to continue.
The Australian Bureau of Statistics (ABS) shows the average weekly income is $1,608.40 and the average price of residential dwellings in Australia is $679,100. That means $136,000 would be the 20% deposit that’s required.
QUESTION: How many years would it take you to save $136,000? Even halving the deposit to 10%, how long would that take?
1. Convert your Super into a SMSF. And buy through a SMSF.
Turn your Super balance into a SMSF – and then buying property in your SMSF – is one way that you can create an instant deposit (takes anywhere between 2-4 months to have a SMSF completed and finished).
2. Set up a joint venture SMSF. You need a minimum of $90k as a SMSF balance (up to four people in the SMSF) to buy property.
3. Save your deposit 30% sooner. First Home Super Saver Scheme. The recent Budget, handed down in July 2017, set out new rules, enabling people to save 30% faster for a deposit. It’s called the First Home Super Saver
Scheme. It can help you save for your deposit 30% faster.
4. Get a financial ‘gift’ from friends and family. Depending on the location of where you buy, this ‘gift’ can be repaid in under 3 years. OR – used
(recycled) to buy your 2nd property.