It seems like breaking into the property market is tougher than ever. But Prime Minister Malcolm Turnbull believes the Australian dream of owning your own place isn’t quite over yet. Here, he shares his tips for saving up for a deposit and getting the keys to your very first home.
1. Cut down on small luxuries
Having a glass of Grange on a Tuesday night is lovely. But do you really need to open the Hill of Grace too? Of course there’s no need to cut back right to the bone, but a little trim here and there could be the difference between a tennis court, and a tennis court with lights.
2. Be rich
This is a great little tip, and one that people often overlook when saving for a deposit. Just by being really rich, you can quickly cut down your mortgage almost to nothing, making the repayments really quite manageable. If you can’t be rich, make sure your parents are.
3. Get your salary paid straight into your bank account
Just tick the box on your employment form that says ‘Cayman Islands’. Also, while you’re saving up for a home, put the $270-a-night travelling away from home allowance to good use. By staying at a hotel, or even better, your wife’s investment property, you’ll be able to put extra money aside for your own place.
4. Sell off one of your investment properties
It’s a tough call, but if things are really dire it’s something to consider. Just keep in mind that it may increase your taxable income.
5. Readjust your expectations
We all go in with an idea in mind of where we’d ideally like to live. But do you really need to live right on the harbour? Yes, of course, bad example. But do you really need that second kitchen. Ok, sure, pretty tricky without it. But you get what I mean.
Bonus tip: Once you’ve bought a place, pay off a new mortgage once a fortnight, rather than once a month. That way you’ll accumulate twice as many properties.