Wednesday 24th August 2016
Competing on the world-wide stage is the ultimate challenge for any athlete; the pinnacle of competition. Victory for a competitor is an investment in a better future and a jumping point for bigger things – much like buying a home.
On top of that, athletes in the games receive $20,000 for a gold medal, $13,400 for a silver and $10,000 for a bronze under the Adidas Medal Incentive Funding scheme. With both buying a home and the potential financial benefits of victory at the games in mind, let’s have a look at saving for a deposit and how you stack up against other first-home-buying competitors in Australia.
The long road to victory
A Bankwest report has revealed that the road to home-ownership victory has lengthened over the years. In fact, it now takes 4.5 years for the average Australian couple to save the $110,000 needed for 20 per cent a deposit on a home at the median price across the capital cities, according to a Bankwest report.
This is assuming combined earnings near the national average of $113,619, as well as putting 20 per cent of this aside in a long term savings account (just under $23,000 per year)
If you’re dreaming of stepping onto the property podium, you’ll have to save the equivalent of a gold medal winner’s pay out 5 times over (plus one bronze medal for free thanks to the roughly $10,000 you could get from first home-buyers grants). Under this model if you save a gold medal every year, you should have a $110,000 deposit ready to go, in between 4 and 5 years.
Saving for a deposit on your first home requires the determination and persistence of an Olympian.
Now that you’ve been a gold medal saver for five years in a row, you’ve taken the first steps towards victory. Yet you’re still a smart home loan and several mortgage repayments away from true greatness.
Becoming an all-time great
While saving for a deposit is certainly an impressive feat, you’ve still got a lot to achieve. The first and most important step is ensuring that you’re getting the right advice and training your finances to ensure your loan is a tool to make owning your home easier.
Usain Bolt or Michael Phelps wouldn’t seek advice from just anyone before achieving greatness. Neither should you. Speak to us today, and using our market knowledge we will help guide you towards future real estate greatness. Without it you may just just flap about, like Eric the Eel.