The road to first homeownership in Victoria is challenging, with rising rental costs and a high cost of living across the board. As Angus Moore, senior economist at realestate.com.au, points out, “Saving a deposit is a real challenge for first home buyers.” For an average household in Victoria, saving for a deposit on a median-priced home could take six years, longer than the national average.
Laura Gould, a new homes consultant at Homebuyers Centre, believes the key to breaking into the market lies in thinking beyond traditional saving and loan application methods. “It’s so easy to think, I don’t have enough savings, but you don’t actually know until you start getting the right people involved to help you,” she says.
If you’re ready to make 2025 the year you become a homeowner, here are five alternative pathways to consider:
1. Low Deposit Options
You might not need as much for a deposit as you think. Homebuyers Centre has partnered with Resolve Finance, a team of finance brokers specializing in land and construction, to offer lower deposit options to help first-time buyers enter the market. One popular scheme is the First Home Guarantee (FHBG), which allows eligible buyers to purchase a home with just a 5% deposit, without paying Lender’s Mortgage Insurance (LMI). The government guarantees up to 15% of the property value.
Additionally, you may be able to combine this low deposit option with grants like the First Home Owner Grant (FHOG), worth $10,000. For buyers who need more time, the My Home Plan program offers support with financial literacy and helps buyers with their savings journey.
2. Parental Assistance
Increasingly, first-time buyers are seeking financial help from their parents, whether as a cash gift for the deposit or a guarantor agreement. Gould emphasizes the importance of transparency to ensure everything works out for all parties. “It’s vital for everyone involved to understand the financial background and responsibilities,” she says, advising first-time buyers to seek trusted professional advice when considering this option.
3. Titled Land Incentives
If you’re purchasing land to build a new home, consider whether the land is titled and ready for building. Some builders may offer discounts or incentives for buyers working with titled land. Discounts can depend on factors like location, developer, and home designs on offer. Gould suggests, “You need to look out and just ask the question” about possible incentives.
4. Townhouses
Townhouses are a popular choice for first home buyers due to their smaller size and more affordable price points. Homebuyers Centre offers townhouses as full turnkey packages, meaning everything from fencing to landscaping is already completed. With upfront fixed pricing, you’ll know exactly what your costs and designs will be. Townhouses are often located in the best parts of estates, close to parks, shopping centres, and schools, making them ideal for first-time buyers.
5. Buying with a Sibling or Friend
Co-buying with a sibling or friend can help ease financial burdens and allow you to get out of renting faster. Homebuyers Centre’s Homies range is designed for this market, featuring homes with a second master bedroom to provide equal space for both parties. As with parental assistance, buying with a friend or family member requires professional advice to ensure everyone understands their legal and financial responsibilities. Gould advises speaking with experts early on to manage bank accounts, repayments, and other logistical details.
Get Started with the Right Support
Breaking into homeownership may be easier than you think when you have the right team guiding you. “Just speak to us, jump online, make an enquiry,” Gould encourages. With the right help—whether from a new home consultant, broker, or design expert—you can make the home-buying journey easier and stress-free.
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