How a 29-year-old single bought his own home in Melbourne

Although she did not dive into the Bank of Mum and Dad, a woman from Melbourne used a controversial method to get enough money for a home deposit.

Elise Luhrs was on a mission to save a 20 percent deposit alone, but realized that the five years it would take her would mean she would be priced out of the market as property would be “so much more expensive” .

She has been saving up for about two years, and most of the time she was a university student and worked casually, but she still managed to put $ 1500 away a month on average, all the while renting a place on her own.

The 29-year-old said she had a monthly budget that included eating most meals at home, keeping the weekend quiet, cutting back on her clothing expenses and not grabbing takeaway coffee.

She had also tracked her payouts over a month to find out where her money was going.

The Melbourne resident admits the chase for a 20 per cent deposit was driven by a “lack of home ownership education”.

“I did not know about the lender’s mortgage insurance and thought it was an extra level of stress, but the more I learned, the more I felt a little more accepting of the situation and realized that this is how it is,” she told the news.

“It made it feel more manageable. I was just wondering if it would be possible to save $ 100,000 up in five years… and will there be a property for $ 500,000 longer? “

She built up $ 35,000 for the house deposit, but it was a controversial scheme that also helped her.

Last year, she decided to dive into her super and take $ 10,000 out through the federal government’s early release of the retirement plan.

It has since emerged that $ 37.3 billion was emptied from pension funds under the plan. In February, Industry Super Australia CEO Bernie Dean said the government scheme had affected younger workers who were likely to get worse at retirement.

But Mrs Luhrs does not regret having access to her pension money – as she always wanted to buy a house and was tired of the instability that came with renting.

“It’s already back where it was a year ago. I’ve always had super contributions since I was 14. I had $ 30,000 and it went down to $ 20,000, but now it’s back up to $ 30,000, but I put mine own money in to cultivate them, ”she said.

“Property ownership is a smarter investment compared to the money I had there. I felt I had a good amount in relation to my age and having a full-time role that I consistently put a lot into. Property ownership… also means that I secures myself an investment faster, and it will increase over time by owning the property myself. ”

The community service worker, who works in an advisory role, recently purchased an apartment in the Melbourne suburb of Oakleigh South for $ 435,000.

She also used the First Home Loan Deposit Scheme, which meant she only needed a 5 percent deposit for the property.

But she admits she changed her house-hunting strategy – giving up the idea of ​​snatching her home forever first.

“As a single woman, if I had a different income, I would have been approved to get a little more and I would like to live in the Belgrave area, but I see this as a springboard and have it as equity later and sell in. later., “she said.

The new homeowner said she has no other friends who are able to buy, acknowledging that it is difficult to save up for a deposit while also paying the cost of living.

“I can tell that some of my friends feel defeated and that they would like to strive for home ownership and do not feel it is possible,” she said.

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