Saving for your first home deposit can feel like a long hard road full of lifestyle sacrifices and general uncertainty. Adding fuel to the fire is the unforgettable inter-generational breakfast battle where the housing affordability crisis was blamed on millennials’ penchant for trendy smashed avocado brunches.

Considered the hardest part of buying your first property, saving a deposit takes a lot of discipline. Most of the time it can be the small lifestyle changes that have the biggest impact. When you choose to catch public transport to work each day, cut down on the Friday night cocktails and stop adding that side of crispy bacon, you will be surprised at how fast your savings start to grow.

As we contemplate how achievable the great Australian dream of home ownership is, the reality is that coming up short on that expected 5-20% deposit doesn’t mean losing out on the house of your dreams. There are a range of options available for buyers to bridge the gap and secure their spot on the property ladder.

First home owner grants

If you plan to buy or build your first new home, you may be eligible to apply for the first home builder’s grant of $10,000. The current grant applies to new residential dwellings only and does not include established homes or vacant land, however if a first home owner purchases a home that has undergone substantial renovations, they may still be eligible to apply.

For first home buyers planning to purchase established homes, you may instead qualify for the Stamp Duty Concession where you will not be required to pay stamp duty for properties up to the value of $430,000 or will pay a reduced rate for properties up to the value of $520,000.

Guarantor

A guarantor is generally when your parent allows the equity their own property to be used as additional security for your loan. The primary security for the loan will be your own property, however the lender will also take a mortgage out over your guarantor’s property. This mortgage will not support the loan directly but will be used to support the guarantee from your guarantor with confidence.

Lender’s Mortgage Insurance

If you are needing to borrow more than 80% of your home loan, most institutions will require you to pay some level of Lender’s Mortgage Insurance. When you take out your home loan, the Lender’s Mortgage Insurance will be a one-off premium that you can pay off over time.

But how much would a deposit actually be?

Now that we have discussed the options available for first home buyers, you may be surprised at how affordable it can be to enter the property ladder with a minimum 5% deposit. Here’s some insight into some of our local Perth Hills suburbs that seem to be a popular choice among our first home buyers:

• Koongamia median home price is $313,000 which would require a minimum deposit of $15,650
• Stratton median home price is $330,000 which would require a minimum deposit of $16,500
• Midland median home price is $369,500 which would require a minimum deposit of $18,475
• Bellevue median home price is $385,000 which would require a minimum deposit of $19,250
• Midvale median home price is $385,000 which would require a minimum deposit of $19,250
• Brabham median home price is $412,500 which would require a minimum deposit of $20,625
• Swan View median home price is $413,500 which would require a minimum deposit of $20,675
• Mount Helena median home price is $448,500 which would require a minimum deposit of $22,425

Source: REIWA, Suburb Profile, 2017.

With the current market conditions being so low, increased affordability has enabled first home buyers to secure better homes in more desirable areas all through the Perth Hills and foothills. For those looking to enter the real estate market the time to invest is now if you want to have your smashed avocado and eat it too.