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Buying your first home could be one of the most momentous challenges you ever face.With the average property price in the country exceeding $631,000, according to the Australian Bureau of Statistics it's understandable why so many may struggle. 

However, it doesn't have to be this way. You don't have to subsist on two minute noodles while saving a $120,000 deposit if you approach the problem from a different angle. In order to make buying your first home a little easier, we've put together a quick summary of two alternative home buying strategies.


Rentvesting is an increasingly popular strategy that entails buying your first home as an investment and renting your primary residence. By doing this you won't have to move far away from work, family and friends to a suburb where you can afford to buy property. 

There's more than one way to get on the property ladder.There's more than one way to get on the property ladder.

At the same time you'll still get all the investment benefits of owning property, like capital gains, tax benefits and rental income (which could cover your entire mortgage). Plus, because you're picking a property as an investment you can focus purely on its potential to turn a profit, rather than its proximity to work or your favourite cafes. 

To give you an idea of how this could work out, let's use Adelaide as an example. CoreLogic RP Data has the average property value at just under $500,000. Saving a $100,000 deposit may be a challenge, so instead lets say you buy further out of the city in a growth suburb for only $250,000.

If your investment appreciates at the same rate as property in the city has over the previous year you'll gain almost $12,500 a year in equity before making a single mortgage repayment. Not only that, but according to Canstar the average rent in Adelaide is only $290 for units, so you should be able to find somewhere central to live for under $300 a week. 

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If you're buying together be sure to write up an agreement before hand.

A First Home Buyers Australia survey of young home buyers found that the biggest challenge they face is accumulating a deposit. Halve the savings you need instantly by buying property together with close friends, family or your significant other. 

If you're buying together be sure to write up an agreement before hand so that each party knows what their responsibilities are.

It's also essential to include a plan detailing what happens if one party decides to sell their share early – if you're a little lost a conveyancer can help you structure ownership and draw up and airtight agreement. 

When you've decided on your own ingenious strategy, get in touch with Advantage Finance to start making your aspirations a reality. We specialise in taking the stress and worry out of financing your home, and ensuring that your mortgage is personally tailored to you.

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