5 Savvy Deposit Strategies To Get On The Property Ladder

Let's be real - saving for a house deposit in 2025 for most people feels like an impossible task. With property prices in Australia some of the highest in the world and the cost of living eating away at savings, many first-home buyers are wondering: Is it even possible to get on the property ladder anymore?

The short answer? Yes - but it requires a different strategy than in previous generations. While a traditional 20% deposit might feel out of reach, there are creative ways to break into the market without waiting a decade to save.

Here's how savvy buyers are getting ahead.

Why saving for a deposit feels impossible

The numbers speak for themselves:

National median property price: $815,000 (as of December 2024)

20% deposit required: $163,000 (this doesn't include stamp-duty)

Average full-time salary: Around $100,000 per year

For many buyers, saving six figures while paying rent, bills and everyday expenses feels completely unattainable. And with wages barely keeping up with inflation, building saving is taking longer than ever.

But here's the good news: You don't always need a 20% deposit, and there are ways to accelerate your path to homeownership.

Some options to consider:

1. Co-Buying with friends or family

Buying alone is tough - but teaming up with a trusted friend, sibling, or family member could get you there faster.

How it works:

• You split the deposit, mortgage repayments, and property costs.

  
  

• Ownership is legally structured through a co-ownership agreement to protect everyone's interests.

  
  

• Over time, you can sell your share, buy out your co-owner, or leverage equity for another purchase.

  
  

The risk? Co-owning means shared financial responsibility, so it's crucial to have clear agreements in place before jumping in. Here are some additional considerations you should think through before deciding if it's right for you.

2. Using Government grants and schemes

The government knows first-home buyers are struggling, which is why there are several grants and schemes designed to help.

First Home Guarantee - Which can enable you to buy with just a 5% deposit (without paying lender's mortgage insurance) if you meet the eligibility criteria.

First Home Owner Grant (FHOG) - A one-off payment to help with your first home purchase (amount varies by state).

Stamp Duty Concessions - Many states offer reduced or waived stamp duty for first-home buyers depending on your purchase price.

First Home Super Saver Scheme (FHSSS) - You can make additional contributions to your Superannuation and pull them out to use for your deposit (be sure to understand the annual and overall caps for this strategy).

If you're not across these schemes yet, it's worth checking what you're eligible for - they could save you tens of thousands of dollars.

3. Rentvesting: Buy where you can afford, rent where you want to live

If buying in your ideal suburb isn't realistic, rentvesting could be the answer.

How it works:

• Instead of buying where you live, you purchase a more affordable investment property.

  
  

• You rent it out while continuing to rent in your preferred location.

  
  

• Over time, your property's value grows, helping you build equity faster.

  
  

The downside? You'll still be renting, which means paying someone else's mortgage while managing your own. But for many, it's a smart way to enter the market without sacrificing lifestyle, or needing to move far away from job opportunities.

4. Increasing your income (instead of just cutting back)

Budgeting is important, but there's only so much you can cut before it becomes unsustainable. A more effective approach? Finding ways to increase your income.

Negotiate a pay rise - If you haven't reviewed your salary in a while, now is the time to get researching and putting together a plan to ask for a raise (don't just make an off-the-cuff comment that you want more money at the end of another meeting).

Start a side hustle - Freelancing, consulting, or e-commerce can provide an extra income stream. You need to think carefully about how much time you would have to focus on this

Take on additional work - If possible, casual or part-time work can fast-track your savings.

Remember: Cutting back on small expenses helps, but earning more can make a bigger impact on your deposit savings.

5. Consider a smaller deposit (With a plan for LMI)

A 20% deposit is ideal, but not essential. Many lenders allow buyers to purchase with a smaller deposit, though in most instances it means paying Lender's Mortgage Insurance (LMI).

LMI can cost thousands of dollars, but it could be worth it if:

- The property market is rising - Waiting longer might mean paying more.

- You have strong job security and borrowing capacity.

- You want to enter the market sooner rather than later.

If you go down this path, work with a mortgage broker to make sure it's the right financial move for you.

If you have someone who would be willing to go Guarantor for you, then you may not need a large deposit at all, or if you have a specific occupation that fits within the banks guidelines, they may be happy for you to get a loan without a large deposit (a good Broker can help you see if you qualify).

The bottom line

Yes, saving for a house deposit is harder than ever, but homeownership isn't necessarily out of reach. The key is thinking creatively, exploring alternative strategies, and taking advantage of the support available.

Instead of waiting for the 'perfect time' to buy, focus on what you can do now to get ahead. Whether it's co-buying, rentvesting, leveraging government schemes, or boosting your income, there are pathways to getting on the property ladder you just need to be clear on your goals, your numbers and create a plan

Original article sourced from View.

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