Need Advice: Saving for a House Feels Impossible with Rising Prices.

DontNeedThis on 29/07/2025 - 10:12
Last edited 29/07/2025 - 16:13

Hey Ozb,

Hoping to tap into the collective wisdom here because I’m stuck in a classic catch-22 with buying a house. Here’s the situation:

Current savings: $10k.
Saving rate: ~$20k/year (not spending a penny unless I really have to).
The math: In 2 years, I’d have $50k saved, enough for a 10% deposit (and fees and insurance and whatnot) on a $600k place today.

But I feel like, n the current market, 2 years is too long and by the time I hit $50k, I’m guessing I’ll need $70k+ just to keep up with the same property type. It feels like running on a treadmill that keeps speeding up.

My Questions:

Any creative strategies to get into the market sooner before it gets out of my reach forever?
Are there gov schemes I’ve missed? (e.g., FHSS, shared equity, guarantor options?)
Is it worth buying anything sooner? Eg: A "meh" place now to get in the market, then upgrade later? Will upgrading be easier that way?
Or keep renting/saving and pray for a dip? (I don’t trust the market to dip while we have all these tax benefits that encourage buying multiple properties)
Mental health angle: How do you stay motivated when the goalposts keep moving?

Hoping someone’s been in this spot and found a loophole? Or knows a legit broker/lender who works with tight deposits?

TL;DR: Saving $20k/year, but house prices outpace me. $10k savings now → $20k in 2 years might still leave me $20k short.

edit: 30 minutes in and there are already so many helpful comments. This is why I love the OZB community. Thank you all.

edit: Should I prioritise land size over distance to CBD? Which one is better in terms of investment?

Home & Garden

Comments

  • Nugs on 29/07/2025 - 10:19
    +6

    in SA
    https://www.homestart.com.au/
    also, saving $20k/yr is 770 per fortnight plus whatever you are paying for current rent. have you used online mortgage calculators to see if you can actually afford a loan?
    .

    • DontNeedThis on 29/07/2025 - 10:24

      Thanks. I'm in Melb.

      saving $20k/yr is 770 per fortnight plus whatever you are paying for current rent.

      Is that too high or too low?

      have you used online mortgage calculators to see if you can actually afford a loan?

      Yes I can. My problem is the never-ending pursuit of the deposit as a single income earner.

      • Hybroid on 29/07/2025 - 10:30
        +8

        Have you properly calculated mortgage costs? You're going to need more than $700 a week to pay towards a mortgage. Oh and you'll have LMI added in at 10% deposit. Plus council taxes. Plus bills. Plus endless repairs and fixes.

        I do feel for you, it's a really tough situation. Took us 5 years to finally buy a property and definitely lost out a lot due to rising prices.

        But you really need to calculate it through properly and understand all the costs beyond just deposit. Unless you're renting at the moment and the intent is that goes towards mortgage instead.

        Also, don't buy an apartment.

        • DontNeedThis on 29/07/2025 - 10:39
          +3

          You're going to need more than $700 a week to pay towards a mortgage.

          I'm currently paying $550 just in rent. I can manage adding a few hundred dollars to that.

          Oh and you'll have LMI added in at 10% deposit. Plus council taxes.

          Add rising house prices to that and becomes impossible to save up.

          Also, don't buy an apartment.

          Yeah, the "bad investment" angle apart, I really can't live the rest of my life in an apartment.

          Thanks mate for the advice.

          • barge-in hunter on 29/07/2025 - 12:31
            -2

            @DontNeedThis: $550 rent per week, or fortnight?

            If you’re paying $550 pw in rent, then you need to find somewhere cheaper. It sounds like you don’t share house? Or you do, in a very expensive area?

            • DontNeedThis on 29/07/2025 - 12:37
              +5

              @barge-in hunter: Per week.
              I'm not sharing a house. I can't do that anymore getting close to 40. In melbourne $550 is pretty average in metro. I also need to think about being able to get to my work.

              • samyall on 29/07/2025 - 14:53
                +5

                @DontNeedThis: If you're already almost 40 then a 30 year mortgage will take you to 70. While its not out of the question you'll still be working, its a risk that you might end up with a higher rate.

                If I were you, I would think long and hard about why I want to own property and if it makes sense.

                I saw you mentioned that you want to be close to your work and don't want to live in an apartment forever. Can you realistically buy a place that fulfills that criteria? If not, what are you getting out of a purchase?

                • DontNeedThis on 29/07/2025 - 15:54
                  +11

                  @samyall: In just the past 3 years I've paid $85K in rent. I think that's enough reason for wanting to own a property. Also, even if I stop working at 60 and end up selling, I'd still have some equity. On the other hand, if I keep renting, I will have wasted $572,000 in rent. And that's considering the rent stays the same for 20 years. Which is the most unrealistic hypothetical ever. If we get the average rent increase which is around 4% under normal conditions (no pandemic etc.) in 20 years I will have paid $850K in rent. Does that make financial sense?

                  Can you realistically buy a place that fulfills that criteria? If not, what are you getting out of a purchase?

                  Yeah, with around $600K right now, I can.

                  • localhost on 29/07/2025 - 18:22
                    -6

                    @DontNeedThis: Buy a 1BR apartment in the same area. Assuming the price will be about $250k. All money from rent will go to repayment and you will increase your savings. In 3-4 years you can sell it and get at least $100k toward house purchase.

                    • ForkSnorter on 30/07/2025 - 08:12
                      +2

                      @localhost:

                      Buy a 1BR apartment in the same area. Assuming the price will be about $250k

                      Where can you get a 1BR apartment for $250k? Are you talking about some dodgy 1/4 house unit kind of thing out in some country town?

                      • mskeggs on 30/07/2025 - 09:20
                        +3

                        @ForkSnorter: $250k is very hard, but inner Melbourne has low rise 1br flats from under $350k.
                        They aren't spacious, but are well located and have the advantage of flipping OP from paying rent to paying down a mortgage.

                      • localhost on 30/07/2025 - 12:28
                        -1

                        @ForkSnorter: In the area where 2BR houses are $550k.

                  • samyall on 30/07/2025 - 10:44
                    +1

                    @DontNeedThis: Okay, I get that seeing you money going to your own asset is a good enough reason as any but if you had $100k tomorrow and bought a $600k place you would likely pay something like $520k in interest over the course of the loan. That doesn't include anything like strata/rates/maintenance.

                    If you invest all the money you would have paid in interest you have at least million dollars sitting in the bank after 30 years.

                    My point here is that financially home ownership isn't the only way to build wealth.

                    If I were you, I would be using the FHSS and putting the max away if you can. Its the quickest way to maximise your money saving and if home ownership isn't possible, you have extra money in your super for a more comfortable retirement.

              • barge-in hunter on 29/07/2025 - 15:00
                +4

                @DontNeedThis: Ok, totally get not wanting to share your place - and I’d probably have the same sentiment in your circumstances

                But.

                Assuming $550 is a two bedroom place, by renting out your spare room for $250 per week, you could save an extra $1000 per month / $12k per year.

                It’s a very fair choice for your stage in life, but it is a choice that’s making the wait to buy a home much longer

                • Merish4U on 29/07/2025 - 18:34

                  @barge-in hunter: +1 to this.

                  Suffice to say 'Measure twice, cut once' - 1br's in most markets tend to appreciate less than 1br+. As you're selling to a much smaller market place. So I concur that getting say a 2BR and being very picky about a boarder with you is ideal IF you can manage it.

                  Again compromise is at the core of this. But is a good plan, as @barge-in hunter hunter lays out well.

                  • mskeggs on 30/07/2025 - 09:22
                    +3

                    @Merish4U: Agree that 2br is better than 1br, but in this case OP is comparing renting vs owning.
                    And a 1br low rise apartment can have them owning in under 2 years.

              • SlickMick on 30/07/2025 - 09:20
                +1

                @DontNeedThis: I started with an apartment at Seaford and walked to the train station to get to the city each day. You have to take saving seriously.

                When we bought our first home, it was a dingy little cottage.

                Each time we've relocated, were were able to use the equity in our previous home to get something better.
                Now we have a nice home and don't need to budget our finances. But I still not pay for entertainment subscriptions.

            • Drakesy on 30/07/2025 - 12:31
              +1

              @barge-in hunter: The national average rent is $665, OP doesn't have a lot of wiggle room downwards.

              If they're in Sydney then they're fcuked.

              • barge-in hunter on 30/07/2025 - 13:01
                -1

                @Drakesy: I think OP said they were in Melbourne?

                Either way, I’m not suggesting they downsize to reduce rent. They could rent out their spare room now (and up their savings rate by .. 60%?)

              • DontNeedThis on 30/07/2025 - 13:11
                +4

                @Drakesy: Don't have any wiggle room to be honest. Thanks for not repeating the "go somewhere" cheaper comments. At the end of the day, I need to be able to go to the office. The best I can do is go somewhere that's $30 cheaper isn't it? That'll barely break even when considering moving costs. It's not a viable option from any angel, but I understand it's easy to just say "live somewhere cheaper, problem solved".

            • TheFreaK on 31/07/2025 - 09:52

              @barge-in hunter: ~$550 per week is pretty average in this day and age mate - definitely not expensive

  • Cluster on 29/07/2025 - 10:25
    +33

    The housing situation is borderline insane. I live in Adelaide and just saw my council rates statement. My house increased in value from $550k to $690k in one year. $140k… My house makes more money standing there, doing nothing, than I do working 40 hours a week. The rise doesn't do me any good. I now have to pay more in insurance, levies, water rates, and of course council fees. My council fee has increased over 10% since last year. I don't earn 10% more to cover it.

    Adelaide was once considered an affordable alternative to Melbourne and Sydney. Not anymore.

    Buying a house hasn't been 'easy' for at least a couple of decades. I remember people complaining in 2005 about how much it costs, but obviously price to earning ratios are much worse now. I don't know how young people on average incomes afford a house now. I guess they have to settle for an apartment, or just rent all their lives.

    • DontNeedThis on 29/07/2025 - 10:43
      +6

      The housing situation is borderline insane.

      There are policies in place that enable/encourage even normal people buying 18 properties. No hope prices getting lower.

      • Merish4U on 29/07/2025 - 15:03
        +14

        I don't mean this in a narky way but giving any time to worrying about what others are doing, legislative changes that might be logical, etc is not going to help you.

        Identify the stuff YOU can do….and do the best you can with them. If it's so important, then you have to compromise more stuff. Otherwise…it's not that important. There is no magic solution to the issue for you, so you can spin your wheels on it till the cows come in or figure out a path of action and crack on.

        At the end of the day the buck stops with you. Thats sobering but irrefutable so why worry about anything beyond that?

        • DontNeedThis on 29/07/2025 - 15:58
          +1

          That's great advice really. Thanks.

          • Merish4U on 29/07/2025 - 17:44

            @DontNeedThis: Thanks for being a sport about it. Unquestionably stuff is harder now for many - but in other regards its better than ever e.g healthcare, freedom of info, travel costs etc. Over fixate on one thing and it'll just get you down and further from your ultimate goal.

            I am far from religious and though this is a tad hokey it sums up the approach I would advocate for:

            O God, give us the serenity to accept what cannot be changed, the courage to change what can be changed, and the wisdom to know the one from the other.

            • Andrew0415 on 30/07/2025 - 09:42
              +11

              @Merish4U: What a load of tosh. This isn't an issue of mindset. We should not "accept" the failures of multiple governments on affordable housing. This crisis is by deliberate and ongoing design and your advice amounts to nothing more than "suck it up, princess".

              Not surprised this pithy crap is being +'d by the galaxy brains of OzBargain.

              • Merish4U on 01/08/2025 - 16:20

                @Andrew0415: My post was in no way intended to be in short a "Suck it up Princess" as you put it. Which is a deliberate peversion of what I said.

                My intent was to say that getting fixated on the macro housing issues is going to get the OP no closer to their own personal goals. Sure take an interest in it, be active etc - thats to be lauded. But regardless of what is true or merely perceived is as it pertains to the OP, essentially moot.

                Now for a lot of folks that can become overwhelming as it feels like I'm completely screwed, why bother - which can become a self fulfilling prophecy which obscures you from the little PITA, things you can do that are tangible, results based and will work. They're not easy and not for everyone but they're an option.

                THAT was my point - if I wanted to say,"It was harder in my day" or some other stuff I simply would have. I didn't, for good reason as it is very difficult and I have significant sympathy for folks trying to navigate a complex system. So @Andrew0415 please don't post such nonsense.

        • cfuse on 30/07/2025 - 09:52
          +4

          In an extremely adversarial environment considering what others are doing is very important for strategic reasons.

          If you know that conditions as they stand result in a borderline impossible situation for you then you also know that following the same script everyone is (and generally failing at on top thereof) is likely to get you nowhere. So unless you have a very good reason to do it that way, don't.

          If I was in the wagie until death situation then the optimal strategy isn't savings based, it's income based. By all means, save hard, but you're going to get a hell of a lot more from aggressively job hopping and bumping your wage every time. Increase your wages but keep your lifestyle where it is. Do that as much as you can safely get away with in your vocation and situation.

        • Drakesy on 30/07/2025 - 12:33
          +6

          Supreme gaslighting.

          The suck it up and deal with it approach is what the government is expecting us to do whilst they pull the ladder up on the have nots.

          Hence why the liberals are fading into oblivion.

        • datscheap on 30/07/2025 - 13:36
          +2

          I agree with this for the individual but long term people should know what is causing the housing crisis.
          We need information to know what to vote/ protest against and understand how to make this better.

          I work with older people and it is common for them to own 10+ investment properties. If that was limited to one per person that would help immensely.

          Its BS that my family have been paying taxes here for over 100 years and my teenage kids probably wont be able to own a home.

          Here is a poll I did awhile ago:
          https://www.ozbargain.com.au/node/861362

          • Merish4U on 30/07/2025 - 14:20

            @datscheap:

            I work with older people and it is common for them to own 10+ investment properties. If that was limited to one per person that would help immensely.

            Its BS that my family have been paying taxes here for over 100 years and my teenage kids probably wont be able to own a home.

            When I come to BIG and strong opinions, I like to have the full info, so I can make a balanced, rational and fair decision. The way you have presented those two statements doesn't allow this. Both statements might be very true, very false or completely misleading and it's more nuanced than you portray - and personally I tend to lean to the latter.

            I suspect there were a lot of 'sliding door' moments for all parties - and what they chose effected the end outcome. Other factors? Sure but it's a very complex problem (housing unaffordability) and to imply it's otherwise doesn't progress the solution towards a problem.

            I'm not sure what if anything you feel that your poll 'proves'? No offence meant at all as I encourage constructive discussion of most matters but my only real takeaway from it is that alas people are still following our informal national tradition of blaming their woes on those who most recently arrived to our shores. And thats from somebody thats as Anglo as they come.

            • datscheap on 30/07/2025 - 14:45
              +1

              @Merish4U: Unlike you, I didn't bring up immigration as a factor as its a complex issue but…
              I do believe limiting and/or taxing the heck out of excessive IP ownership is something the government could easily implement that would at least help hardworking people become home owners.

              • Merish4U on 30/07/2025 - 14:49
                +1

                @datscheap:

                Unlike you, I didn't bring up immigration as a factor as its a complex issue but…

                ???? You literally linked and referred people to look at YOUR OWN poll, such that it is - and within it the top voted perceived problem for housing on it, according to those who responded - is 'Too much immigration'.

                https://www.ozbargain.com.au/node/861362

                Yet I brought up immigration? :-/

                • datscheap on 30/07/2025 - 15:10
                  -1

                  @Merish4U: I didnt bring up immigration once. Not sure if you know how polls work?
                  Others did but I didnt vote for immigration being a key problem.

                  I'm more of a anti monopoly for housing kinda guy
                  Honestly I feel you are a 'just want to argue online person', while telling the OP not to 'giving any time to worrying about what others are doing, legislative changes that might be logical, etc is not going to help you'

                  OP, its OK to be pissed off with the system that has failed you.

                  • Merish4U on 30/07/2025 - 15:16
                    +1

                    @datscheap:

                    I didnt bring up immigration once. Not sure if you know how polls work?
                    Others did but I didnt vote for immigration being a key problem.

                    Sigh………..I believe polls work by the creater of them putting the options in, yes? And I believe you as I stated now 3 times, wanted to highlight and link through to your poll. I commented on my only takeaway from it.

                    So did you comment on immigration in THIS thread, NO - I never said you did. BUT you did in THIS thread highlght and link through to a poll you did where you did allow immigration to be commented on as the runaway winner.

                    Hilarious or bloody sad dependnig on your view that it got ~50% more votes than lack of housing supply. Blame them foreigners never gets old in these parts.

                    Honestly I feel you are a 'just want to argue online person',

                    Do you? Well thanks for sharing. May I retort? As in my experience this is exactly what folks who have crap attention to detail and illogical arguments say when you point this out to them. As the old saying goes, play the ball, not the man. ;-)

      • RTX9090Ti on 29/07/2025 - 17:06
        +3

        This country is quickly designed to create segregation of wealth classes. Thanks to Covid, the wealthy becomes uber wealthy, the Labor mass record immigration designed to create lower income class to serve the elite class. The middle class is to be locked in 30yrs mortgage to be the 'bedrock' of the economy, they calculated so precisely so all your income to be expended on mortage and living costs, leaving little to 'save' and grow your wealth. The group of buying 18 properties are rort scheming practice that's borderline illegal, akin to ponzi but with someone else's money. I think for OP you "dont need this" problem and would be better to relocate to other neighbouring countries with better prospect.

        • ForkSnorter on 30/07/2025 - 08:18

          Yeah, the reality is that we not actually need those uber wealthy property investors who make far more money simply by hanging on to their properties than a typical worker makes by working 2000 hours per year.

          But they need us. Their world would fall apart if we stopped working.

          One day there will be a revolution, and we will no longer put up with property leeches sucking the lifeblood out of the economy for their own benefit and to our expense.

          And we will no longer put up with a government that creates the ideal conditions for property prices to keep increasing faster than wages.

          • corvusman on 30/07/2025 - 09:30
            +2

            @ForkSnorter: Don't worry, AI paired with robotics will take care of us.

            Sad fact is that uber-wealthy don't need the rest of the planet, their sweet goal is to have a nice green planet with population of around 500 million, with enough resources to enjoy their private cities, full with robo-servants and automated factories.

            The rest of peasants can go (profanity) themselves.

    • djsweet on 29/07/2025 - 11:02
      +18

      Borderline? I think we are well and truly in insane territory now.

    • Some Guy on 29/07/2025 - 12:49
      +12

      The Council valuation is a scam. It is the equivalent of the alcoholic guarding the liquor cabinet. My IP went from 700k to 1.1m according to the council. How it's legal for them to set the valuation when their rates are linked to the valuation is beyond me. I'd get laughed at by even the shonkiest of real estate agents if I wanted to market it for 1.1m.

      And the cost/earnings ratio is out of control. I don't know how anyone could afford a house without intergenerational wealth like an inheritance or BoM&D.

      • Cluster on 29/07/2025 - 14:55

        In my council area the council doesn't set the value.

        "Capital value (the value of land, buildings and other improvements) is used to calculate your rates. "

        "The Office of the Valuer-General (state government) determines the capital value of your property. The value of your property is not determined by council."

        Still, there is an obvious conflict of interest here. State government can scratch the back of local government. Certain fees and levies are also linked to property prices, such as the Emergency Services Levy. The higher the value stated by the government, the more money the government gets to collect. Win.

        • Some Guy on 30/07/2025 - 14:50
          +1

          True dat. So it's a state gov dept that sets the valuation while another state gov dept charges land tax linked to that valuation.

          In VIC, land tax jumps substantially for valuations above $1m so my land tax bill has doubled since the valuations skyrocketed, coincidentally at the same time the VIC gov increased the rates of land tax (as they have stated to claw back covid costs). So a double whammy, triple if you count the local gov rate hikes, created by the entities that benefit. Lots of backscratching going on at my expense and ultimately, the tenant.

      • tenpercent on 29/07/2025 - 18:16

        BoM&D

        ?

        • jolygood on 29/07/2025 - 19:35
          +3

          Bank of Mum & Dad

      • blade1981 on 31/07/2025 - 09:45

        It is also a ridiculous way of upping rates. If councils overall budgets are increasing by the same percentage as house prices per year then they are being pretty fiscally irresponsible. I don't see many local councils doing much more than mow the lawns a few times a year, collect waste and run some under utilised community programs (I know I'm underexaggerating on purpose). Basically if they have 10000 houses in their area and the budget it 1million the average should be $1000 each to pay. If your place is worth 80% of the average price in the area you pay $800, if it's worth 150% well you pay $1500. The problem is that next year it is all based on that same average but everyones property is now valued 20% higher so that 80% of average is now paying $1000 and that more expensive property is at $1700. So the whole pot goes up 20%. But for what?

        Yes numbers are very round, very wrong etc. but the concept is correct.

    • JimB on 29/07/2025 - 15:58

      Actually just because your house increased by 25% doesn't automatically mean your council rates will increase too.

      If the total houses/buildings/land in your council increases by 25%, all things being equal, your council rates should stay the same.

      Of course in reality, it will go up slightly due to increase costs of council services and staff.

      The council increase of over 10% would have occurred if your price house remained unchanged.

    • marshmall0w2 on 29/07/2025 - 23:37

      Melburnians are leaving for QLD and SA lol.

      • eek on 31/07/2025 - 09:09
        +1

        QLD weather is insanely hot and humid 9 months of the year. The other 3 during winter are nice and actually bearable to be outside between 9am and 4pm. I keep seeing Melbourne residential real estate being undervalued, but then again the state government have insane taxes for investors dampening their growth somewhat. SE QLD I expect will keep growing until after the Olympic games.

    • Sal in SA on 30/07/2025 - 07:33
      -1

      Or - look at it another way - Adelaide houses have been undervalued for too long.
      Also - how much would it cost to have to rebuild it now with todays costs ? - avg pushing $2k /m2 - for still semi pov spec.

    • Woody982 on 30/07/2025 - 09:53
      +2

      Not decades imo. Just 4 years ago it was considerably easier, with reasonable housing prices.

      For example I bought my first home in country SA in november 2021 for $182k (just house price without other fees) and now that house is worth more than double that…

    • nobro25 on 30/07/2025 - 12:36

      Use OF, Tik Tok, YT etc and let the passive income take over and enjoy your life in the Bahamas whilst you let AI make endless contents for you whilst it churns out mindless shorts for those shitting on the can to have their shitty entertainment.

    • frewer on 01/08/2025 - 12:51

      $140k… My house makes more money standing there, doing nothing … My council fee has increased over 10% since last year

      It's a 'soft tax' of Unrealised Profit, yes it's insane.

  • sghetti on 29/07/2025 - 10:29

    Depends on your living situation. Family? Kids? Location to work?

    Firstly, make sure you've got your expenses calculated, use an online calculator for borrowing capacity based on your income and expenses. That'll give you an idea of what you can afford based on a deposit.

    The process for first home buyers has always been painful, moreso now. It'll be emotional and upsetting at times, missing out due to being outbidded by someone else, missing out on your "dream home". You have to just keep plowing on and looking, making offers.

    Regarding saving, it depends on what motivates you. Setup an app like Frollo or UpBank and monitor your spending, setup a savings target per month/per pay cycle. It might help you stay focused, help refrain from impulse purchases to keep on track with your primary goal.

  • angelkulit025 on 29/07/2025 - 10:30
    +5

    get a partner (to double the borrowing capacity), borrow from parents, or put it all your savings in black =)

    • Cluster on 29/07/2025 - 10:34
      +4

      The 'bank of mum and dad' is doing a lot of heavy lifting in Australia. I wouldn't be surprised if many 30 year old kids weren't tapping into that money source, and parents are delighted to get the adult child out of the house.

      Of course, you have to select your parents carefully. Many don't have a lazy $100k laying around to hand out.

    • DontNeedThis on 29/07/2025 - 10:35
      +14

      No parents. And don't getting me started on the dating scene in 2025 :-))

      • Hardlyworkin on 29/07/2025 - 12:37
        +5

        Saving for a house as a single person versus saving on 2 incomes is a totally different story. The single biggest factor you can do to help you in the next 2 years is fine a partner that is in a similar situation. So quit complaining and get out there, If you're in Melbourne then you have zero excuses.

        • JakeyJooJoo on 29/07/2025 - 19:14
          +3

          100% this. Had to read down a long way to find such an important comment. Especially the case with OP coming up on 40.

          The only way this isn't the most relevant and helpful piece of advice in the entire thread is if OP wants to remain single.

          • DontNeedThis on 29/07/2025 - 23:15
            +3

            @JakeyJooJoo: Don't want to remain single. Just hard to find people these days. I'm 37 btw.

        • supersabroso on 30/07/2025 - 23:39

          Yep, find a partner and house hunting will be a lot more fun and easier to afford. Otherwise, you'll have to get a better paying job, $10k in savings is nowhere near enough to buy a house unless you get in with some special government scheme. You should be trying to aim for a 5-10% deposit which means you'll need about $45k to get town house worth $600k. House price rises don't outpace deposits but it will definitely outpace your income rises, 3 years is not that bad if that's what it takes to save up $50k and you can't get help from your parents.

  • DontNeedThis on 29/07/2025 - 10:33

    Depends on your living situation. Family? Kids? Location to work?

    No family, no kids. Work is in CBD, two days in the office.

    The process for first home buyers has always been painful, moreso now. It'll be emotional and upsetting at times, missing out due to being outbidded by someone else, missing out on your "dream home". You have to just keep plowing on and looking, making offers.

    Thanks mate. It is painful! It's taking a toll on people's mental health.

    Regarding saving, it depends on what motivates you. Setup an app like Frollo or UpBank and monitor your spending, setup a savings target per month/per pay cycle. It might help you stay focused, help refrain from impulse purchases to keep on track with your primary goal.

    No need, since I started saving, I haven't spend a cent unless I had to. Most food items I only buy if they're on a 40%+ sale.

    • DontNeedThis on 29/07/2025 - 10:45

      @sghetti

      Sorry, this was a reply to you.

      • sghetti on 29/07/2025 - 10:52

        Yeah saw it, replied but it didn't post.

        Can completely sympathise with first home buyers. I've had many friends who have been through the process in recent years and felt like giving up, it's bloody stressful. I recently had to start again and purchase a home on my own, a rollercoaster of emotions.

        I haven't looked into it too much as I'm not eligible, but the FHSS would probably be the most tax effective way of saving a deposit for a home. Try to work out what you want/need in a home. Just a unit? 1-2 bedrooms and living area? Getting your foot in the door is better than sitting on your hands. With the way the market is, any fees to buy will be absorbed in the value increase on the property.

        If your life circumstances change in the future, you can either sell or keep it as an investment if borrowing capacity enables you to.

        I bought in the inner North-East suburbs in Adelaide a year ago in August, it's already appreciated much more than the stamp duty fees and everything else required to buy which has been fortunate. I just don't see how it will slow down as people from other states move here as it's more affordable, and homes aren't being built fast enough to cover demand.

        • OMGJL on 29/07/2025 - 11:02

          the median salary to house ratio in Adelaide is worse than Melbourne already…

          • sghetti on 29/07/2025 - 11:03

            @OMGJL: I know. I'm lucky I was in a position with my salary and previous home proceeds to have a decent deposit already. It was still a struggle to find something that met my needs within the range I could afford in the area that I ideally needed to live in.

          • Sal in SA on 30/07/2025 - 07:34

            @OMGJL: Same token - also still decent if WFH for Sydney / Melbourne even QLD wages and living in Adelaide.

            • OMGJL on 30/07/2025 - 07:38

              @Sal in SA: indeed —- although with all the new RTO trends, finding a new job that allow ppl working from SA is practically impossible now. only those pre-existed agreements as far as I can see.

    • 0z8smakf on 29/07/2025 - 18:36
      +7

      Good on you mate, not to discourage you at all (I own my own house) - buying it is one thing, then the on-going fess are another - then add the additional work required to maintain the house.

      So if I were in your shoes I would save up a minimum of 20% for the deposit, so you're not affected by LMI, so if we use 800k as a baseline price this is what you'll be paying:

      Initial fees required up-front:

      • Deposit (20%): $160,000
      • Mortgage Registration Fee: $125
      • Transfer Fee: $1,974
      • Stamp duty: $43,070
      • Lawyer (surveyor) fees: (usually about: $1500
      • Mortgage broker fees: (unknown)
      • Bank fees for your mortgage: (unknown)
      • There may be other fees relative to pest inspection/building inspection etc.

      Total: $206,669 up front, lets just round it off to $210,000.

      Leaves you with a total of $640,000 payable on your mortgage.

      Here comes the on-going fees:

      • Bank Interest fees on $640,000 = $31,040 per annum
      • Council rates: Unknown, lets say about $1500/annum
      • Electrical (Average single person, I would say uses approximately $1800/annum)
      • Water rates (Quarterly - lets say $1500/annum
      • Insurance: this obviously depends on the house, however I'll say $1800/annum)
      • Internet: $840/annum

      I've been fairly conservative/realistic with the numbers above.

      Per month you're going to loose: $3,206 just to maintain the mortgage and other expenses relative to the house, this doesn't account for food/petrol/registration/car insurance etc and anything else you may spend on yourself, it also doesn't account for any principle payments towards your house (which is important to get the interest down as quick as possible).

      Now I don't understand your life story or how you eventuated to 10k at the age of 40 and to be frank I don't really care - however what I can say is that if you've arrived at this point in your life and you've only saved 10k then you need to reevaluate where your money is going, get additional funds and become better at saving up - you're pretty much walking into a minimum of 20 years of depression… you'll have no life and will be forever repaying the banks interest/rates and maintenance…. you're leaving yourself with no buffer in the event that if you were to get sick or needed funds for whatever reason.

      • DontNeedThis on 29/07/2025 - 18:54
        +14

        Thanks for typing all that up. I'm a migrant from a "shithole" country. Came here about 10 years ago as a student. That put me in a lot of debt, but also was my only way to migrate. Also spent a lot of money helping parents. So I haven't had the privileges that come with growing up here and having a financially supportive family, or even a family to go to when things get tough. Not complaining, just saying the fact that I'm here, have higher education from a top university, and have a $110K job, is a miracle of sheer will and incredible hustle considering where I started.

        • 0z8smakf on 29/07/2025 - 19:22
          +5

          Understood - I am 37, I was first generation in my family to be born in Australia - my parents are both migrants and are in both low paying jobs (now both retired in their 60's), luckily they haven't needed much support besides helping them with technology.

          While our situation is different, you've given me more information to play around with which is very useful.

          • You make 110k/annum (not sure if this is before or after tax), I am presuming it's before which will leave you with approximately $80k after tax.
          • You're currently spending approx. 30k/annum on rent.

          Leaves you with 50k/annum.

          If you're serious and want to buy a house then you have a few options:

          1. Move into shared housing where your expenses could potentially drop from 30k to 10k per annum (shared with 3 people).
          2. Make money outside of work, uber, reselling items, or something you're good at.

          I can't stress this enough - try and save up as much as you can before you buy a house… it'll save you from the dreaded interest repayments - paying off the interest is an absolute killer because it's money that goes straight to the bank (pretty much like rent).

          If you can save 40-50% this will put you in a really good position!

          Good luck

          • DontNeedThis on 29/07/2025 - 23:20
            +5

            @Lunarboogie: At my worst here, I'm living a much better life. That's why I absolutely love this county and its people. I just don't want to be homeless and destitute when I'm 65.

            • Sal in SA on 30/07/2025 - 07:35
              +2

              @DontNeedThis: Share house for just a few years then to get more savings ? has to be better than previous country still…

            • DontNeedThis on 30/07/2025 - 07:43
              +12

              @Ozbargainusername123: Mate, please travel more often. You have a very cartoonish idea of third world countries.

              • Ozbargainusername123 on 30/07/2025 - 09:55

                @DontNeedThis: Mate, I'm speaking from first hand experience. I've been myself to see it.
                Although, admittedly I've never traveled the shitholestan countries. Every third world country I've been does have affluent areas.

            • Lunarboogie on 30/07/2025 - 17:22
              +1

              @Ozbargainusername123: To be fair, 'shithole' was OP's own description. I simply extended the vernacular.

              OP is preoccupied with owning a house and fears being 'homeless and destitute at 65'. So I made a comment in his case, it might be worth considering retiring back there, where at least he could get that prized piece of real estate without having to sell a kidney. Plenty of Aussies are decamping to SEA and other places to retire.

              Third world places aren't all doom and gloom. The middle classes there live lives of unimaginable oppulence. I spent a large part of my career working in developing countries, so I can tell you this from experience. When I get to retirement age, I'll be packing up my bongos and heading back to SEA where my super will go so much further. Not sure why suggesting this to OP is negged. Maybe I am a racist (I too am a migrant btw).

              • DontNeedThis on 31/07/2025 - 15:15

                @Lunarboogie: @Lunarboogie @Ozbargainusername123

                Your understanding of third world countries and their economies is comical. I just calculated how long it would take me to buy an average property in my home country if I could save one-third of my salary there (which is close to impossible). 416 years!!! Yes, that long. That's only if the house prices stay as they are now.

                Also, SEA is not third world.

                • Lunarboogie on 31/07/2025 - 17:42

                  @DontNeedThis: Yeah, nah. Is there expensive homes in SEA, absolutely. There are seriously rich people there. Is the mean or median price higher than here? Absolutely not.

                  Nor was I suggesting that you earn locals' peanut wages. I suggested though that if you continue working here and retire 'there', you'll be able to afford a grander place than here.

                  • DontNeedThis on 31/07/2025 - 18:08

                    @Lunarboogie: As I said, SEA is not third world, hence it doesn't have as bad an economy as the actual third world countries. In my home country, a comparable house to what I can get here is upwards of $1mil.

          • eek on 31/07/2025 - 09:17

            @Lunarboogie: I'm a migrant from SE asia. Similar background - parents weren't rich, no bank of mum and dad or support of any kind. Managed to crack the real estate market here with a 'higher than median' income.

            Prices 'back home' are INSANELY expensive at around USD17,700 per square meter of residential space…and that's in a crappy apartment potentially without an elevator! Rental yields are 1% or less, so I'd say Australian real estate is pretty damn cheap.

            • Lunarboogie on 31/07/2025 - 17:39

              @eek: Unless your referring to HK or Singapore, you’ll be able to purchase property for significantly less than here. I'm not suggesting you (or anyone on here) will be able helicopter into Menteng or Damansara Heights and live next door to tycoons. But move down a suburb or two and go less palacial and the price falls away rapidly. To say that SEA property prices is some how on par with Australia is just fanciful.

    • Pidapipo on 30/07/2025 - 22:32
      +1

      I just want to add that with 2 days in the office, you dont need to be somewhere close to the CBD. For example, it’s 25 mins by express train from Laverton to Southern Cross and express train runs every 10-15 mins before 7PM. You can find much affordable properties if you start looking further out.

  • screensaver on 29/07/2025 - 10:35
    +6

    I saw 7 cars parked in a front yard last night in quite a small property. Made me wonder if people got together to pool their money as prices are 1 million here. They werent visitors as it was lights out time. I have seen this on several houses in my area (I collect cans from bins on bin night)

    • Kongzi on 29/07/2025 - 10:43
      +1

      Someone was getting lucky

      • Thrift on 29/07/2025 - 11:55
        +4

        Surely a person who can afford a million dollar house can afford 7 cars. /s

    • OMGJL on 29/07/2025 - 11:08
      +5

      if you went to enough house inspections lately, you can see some units/houses have like 2 mattress with no bedframe per bedroom and potentially another sofa bed in the living room.

      some culture is willing to give up their lifestyle completely to save every cent possible

    • JIMB0 on 29/07/2025 - 14:39

      Car hoarders. Most likely renters.

    • souths123 on 29/07/2025 - 19:32

      it is prob being rented out and 7 people are paying the rent…..more and more are turning to share a house, not just very young people due to rents and home prices getting totally out of control

    • simplystu on 29/07/2025 - 20:56

      maybe they rent out car spaces ???

      I live near airport (10 mins) - homes in area are generally 3/4 bedrooms + 2 bathrooms. Next door neighbour lived in a similar house all by herself …
      she used to rent out car spaces to FIFO workers … often 3-4 FIFO workers at a time (which meant 4 extra cars sitting in her spare side driveway for weeks on end).

      This was all before the likes of internet "side jobs" (airtasker/etc) … she was a very entrepreneurial woman - for someone of her age.
      Sadly, she has now passed away.

      • Protractor on 29/07/2025 - 20:59

        maybe they rent out car spaces ???

        Nah. It's the Kerrigan's place

  • Protractor on 29/07/2025 - 10:43
    -1

    Focus. Cut back on non essential spending. Save instead of spend. Say no more often.

    • DontNeedThis on 29/07/2025 - 10:47
      +3

      Thanks. I'm currently even saying no to medication and Dr appointments.

      • Protractor on 29/07/2025 - 10:49
        +6

        That won't do.

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