If you’re a young person in Australia just starting out in your career, it’s easy to feel daunted by the cost of buying a house. The price tags can be astounding – $600,000? A full $1 million? Who has that kind of money?
Certainly not you, if you’re just plugging away at an entry-level job. But if you’re dead-set on owning property anyway, you might decide to go to extreme lengths to make your dream possible. You could even be like one young woman in Melbourne who decided to work five jobs at once.
Saving money like a champion
For a shining example of how to save for a home, look no further than 22-year-old Felicia Coco. News.com.au reported that Coco was able to buy a home at a young age because she worked five jobs, lived with her parents and sacrificed her social life just to make money. It worked.
“I recognised the value in investing in property at quite a young age,” Coco said. “It was something reinforced pretty early on from my parents. I was well aware it was quite expensive and difficult to get in the housing market, and it did take many years of saving, budgeting and trying not to be frivolous with money.”
That’s a lot of sacrifice, but by 22, Coco had enough cash saved to make a deposit and handle the home loan interest rates as well. That’s quite a success story.
What if you can’t work five jobs?
On the other hand, working five jobs isn’t for everyone. Domain.com.au pointed out that there are alternative ways to save for your first home deposit, even if you’ve got just one job. Personal finance expert Cath Sharples-Rushbrooke recommends putting some of each paycheck into savings and mapping out a plan to afford a home after a certain number of years.
“Have your employer transfer a portion of your pay into that account and the rest into an access account,” she said. “Make sure the savings account is hard to access so you’re not tempted to use it.”
This isn’t an extreme strategy like working five jobs, but it should eventually still yield a deposit and a stream of mortgage repayments. With a little discipline, you can make it work.