To many young buyers, getting a foot on the property ladder can seem quite challenging.
Rising house prices and juggling study commitments with saving, can make owning a home seem near impossible.
Over the past 18 months, house prices have grown by a staggering 19.5% in Sydney, 15.6% in Melbourne, 4.3% in Brisbane and 3.5% in Adelaide, data from CoreLogic shows.
But despite the current climate, 19-year-old first home buyer Louka Bogiatzis said that with a little hard work and foresight, investing young can definitely be done.
Louka Bogiatzis is 19-years-old and is already a home owner. Picture: Nigel Hallett
The teen buyer recently purchased his first property in Coomera, QLD, after saving for a deposit during high school.
“I had to give up my school holidays working (in) labouring. During school, I had to give up two days a week and I would go and work at a sales agency,” he said.
While one-third of new homebuyers rely on the ‘bank of mum and dad’ for their deposit, the teen says that because of his forward planning, it was mostly his own hard earned cash that went towards the deposit.
He managed to put $10,000-$15,000 aside per year to put towards his first home.
“I’ve been working after school and saved about $80,000 and my parents did help me through it,” he said.
Here are some of his top tips for young Aussies looking to buy their first property.
1. Take advantage of government incentives
Bogiatzis used the first home owners grant towards his deposit.
Young buyers should take advantage of the first home owners grant, says Bogiatzis.
The amounts offered to first-time buyers range from $10,000-$20,000, depending on the state and the type of property purchased.
“The first home owners’ grant was very, very helpful. I put that straight towards my deposit for my house,” Bogiatzis said.
First-home buyers in Victoria and New South Wales may also be able to take advantage of stamp duty discounts.
2. Research the location
The teen’s home is close to a Westfield. Picture: Kylie McLaughlin
Bogiatzis insisted that location was one of the main factors he considered when looking to buy.
Look to invest in suburbs that have the potential to be a boom area later down the track.
“The main reason why I purchased in this estate is because of its location. It is close to the train station, Westfield and there’s a school across the road,” he said.
He hopes that the development of the new Westfield will mean an increase in demand and ultimately an increase in value in the future.
3. Use your spare time wisely
Bogiatzis suggested forgoing those days at the beach and to start working and saving. Picture: Getty
Finding that balance between working and saving for a property while attending school or university can be a struggle.
But Bogiatzis said that giving up holidays and working on days off is crucial.
“Just work hard, give up your school holidays, because it will always pay off in the future,” he said.
4. Plan ahead
The teen said younger buyers need to think about what age they’d like to be when they buy their first property and to set savings goals in advance.
“Think ahead to the future when you’re younger and try and work out your career path because that will really help you in the long run,” he said.
5. Get the right advice
Don’t be afraid to ask for advice. Picture: Kate Griffen
While Bogiatzis didn’t rely solely on his parents for a deposit he said that they were still a massive support when it came to buying a property.
“I was lucky because my parents work in property, so they mainly helped by giving me advice and helping me find jobs,” he said.
Ask as many questions as you can and seek advice from experienced buyers – whether that be parents, relatives, older friends or even professionals.
