Get into Your First Home Sooner: 5 Alternative Buying Pathways

The path to first home ownership in Victoria clearly has its hurdles, including the rental crisis and the overall high cost of living across all parts of society.

“Saving a deposit is a real challenge for first home buyers,” says Angus Moore, senior economist at realestate.com.au.

“For a household earning average income in Victoria, a deposit for a typical or median-priced home represents six years of saving.

“That’s a bit longer than the national average.”

The key to breaking into the market, says Laura Gould, new homes consultant at Homebuyers Centre, is to think beyond the traditional approach to saving and applying for a loan.

“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 keen to make 2025 the year you break through, you could investigate low deposit options, townhouses, or even buying with a sibling or friend, suggests Gould.

“So many people are surprised when they start looking into the journey to find out that they actually are ready.”

When it comes to getting into your first home, there’s no one-size-fits-all answer.

1. Low deposit options

When it comes to a deposit, you may not need as much as you imagine.

“For example, we have an exclusive partnership with Resolve Finance, a team of finance brokers that specialise in land and construction, and we can unlock lower deposit options that might get you into the market,” Gould says.

A popular scheme is the First Home Guarantee (FHBG), which enables eligible people to buy a home with as little as a 5% deposit without paying Lender’s Mortgage Insurance (LMI).

The government guarantees up to 15% of the value of the property.

It may also be possible to combine a low deposit option with another grant such as the First Home Owner Grant (FHOG), worth $10,000.

“For buyers that need a little more time to get ready, Homebuyers Centre offers the My Home Plan program, which helps with financial literacy and supports first home buyers on their savings journey,” Gould says.

2. Parental assistance

It’s becoming increasingly common for first home buyers to get some financial help from their parents.

This might be in the form of a cash gift for the deposit or a guarantor agreement.

For those able to access this, Gould says transparency is vital so that it works out well for everyone.

“The important thing is for all parties to understand the financial background and what their responsibilities are, and getting the right, trusted professional advice,” she says.

Not all forms of parental assistance are the same, so it pays to speak to an expert.

3. Titled land incentives

When purchasing land to build a new home, sometimes it’s titled and ready for building, and other times the title might take a year or more.

Gould points out that if you have titled land, builders might offer you discounts as an incentive to work with them.

“It can depend on factors such as location, the developer, and the home designs on offer,” she says.

“You need to look out and just ask the question.”

4. Townhouses

Townhouses are a popular option for first home buyers, with their more compact size and fewer customisations keeping the price in closer reach.

Gould says that at Homebuyers Centre, townhouses are a full turnkey offer, with fencing, landscaping and more already done.

“It’s all fixed pricing upfront, so you know exactly what you are looking at in terms of cost and design,” she says.

“They tend to be in the best locations within an estate, close to parks, shopping centres, and schools.”

5. Buying with a sibling or friend

Buying your first home with a sibling or friend has the potential to relieve financial burdens and get you out of renting faster.

“The fact that we’ve created a range designed for this market speaks to how this is becoming more popular,” Gould says.

“Our Homies range has a second master bedroom so you have equal space.”

Much like parental help, this path requires expert advice and awareness of everyone’s legal and financial responsibilities.

“Resolve Finance at Homebuyers Centre can get involved early to help you see how the different bank accounts are opened, how you split repayments and things like that,” Gould says.

Getting creative with your home buying strategy has never been easier than right now.