Buying a home could be more affordable than you think. Sometimes, it’s even cheaper than renting!
So how do you find a shortlist of homes that you can afford?
In Melbourne, it generally pays to look west. Let’s compare an emerging hub like Wyndham Vale to its more city-centric and eastern counterparts. In the same direction, but on the edge of Melbourne CBD, is Yarraville. There it’s $2,340* (median) per month to rent and an eye-popping $1,000,000 to buy. Or look at Lilydale which is the same distance away from the city as Wyndham Vale but lies directly east. It costs $699,950* to buy there. You can do better.
Right now, at Urban Square, in Wyndham Vale, you could own a brand new house and land package for as little as $508,620 * for 4 bedrooms. A 5% deposit could mean you only need to save $25,431; that’s before you even factor in the aforementioned grants! At current rates, your mortgage repayments would only be around $1900^ per month.
Protip: if you commit to paying the same amount into your mortgage as you were paying rent in Yarraville, you’ll pay off your loan about a decade earlier and save tens of thousands of dollars too.
Focus on finding a home within a master-planned community like Urban Square at Jubilee and you won’t even miss the buzz of inner-city living. We’ve designed drinking, dining, entertainment, socialising and even job options right outside your front door.
For as little as $409,000*, you could move into an architectural, modern ‘Urban Square townhome by Shape as part of the Fritelli Collection 2. A $29,100 deposit (lower after grants) and around $1500^ per month in repayments seems completely doable. Who needs to spend the weekends weeding the lawn of a conventional home when you have hectares of open space to enjoy without effort right next door?
So now that you’re seriously thinking of buying a house, here are some simple ways to save up that deposit:
- Having a deposit figure in mind will help to motivate you and make saving seem less overwhelming. See where you are at financially by consulting a free mortgage broker or trying some online loan calculators.
- Make a budget. It’s a bit boring, but it really does help you to keep track of where you can save as well as letting you know how much you might be able to afford in mortgage repayments.
- Search for a savings account with high interest and low or no fees. Put your deposit funds here.
- Make a list of all your bills and fees (electricity, gas, phone, memberships, subscriptions, internet, personal loans, etc) and negotiate a better deal or switch.
- Before payday, throw every dollar you have leftover into your deposit savings account. A little goes a long way. This is also a smart way to approach your future mortgage repayments too.
*Prices correct as of 22 October.
Please use this article as a guide only and seek your own financial and legal advice.