Money Dilemma: Should I Wait 5 Years to Buy My First Home?

To: Molly

Subject: Money Dilemma

HI Molly 

I was wondering if I could please get your thoughts (definitely not professional financial advice, just your opinion!) on my savings plan.

I’m currently 20 and planning to save for a house deposit over the next five years - ideally aiming to buy around age 25. Based on my current income, projected salary increases as I finish my studies, and a savings plan that aligns with my monthly expenses, I should be able to save over $100k. I’m hoping this will be enough to cover both the deposit and some renovation costs.

My only concern is how much the housing market, inflation, and even the upcoming Brisbane Olympics might affect things over time, and how waiting 5 years might be a bad idea. 

Would love to hear your thoughts 

on this! 🫶🏽

Molly's Response:

Hey lovely!

Thanks so much for your message and first of all, massive kudos to you 🎉 You're 20 and already thinking ahead about saving for a house deposit that’s amazing and honestly puts you miles ahead of where many people start. Go you!

I love that you’ve got a clear goal (buying at 25) and a plan to hit $100k, that’s seriously impressive. 🙌 Now, here’s where I’d just offer a few thoughts (not financial advice, just my two cents!).

💭 Time is your biggest asset at your age and while saving is fab, it might be worth thinking about how that money is working for you while it’s sitting there. If you’re planning to save over 5 years, you could explore low-cost investing (like ETFs) to help your money grow faster than it would in a savings account especially when inflation is eating away at your purchasing power.

🏠 Rentvesting is also worth considering instead of buying where you live (which might be expensive), you could look at buying in a more affordable area to get your foot on the property ladder sooner, and rent where you want to live. That way, you’re building equity while still enjoying lifestyle flexibility.

🧠 Also, keep in mind:

Renovation costs are rising too so buffer that into your plan!

The Brisbane Olympics could drive prices up depending on where you’re buying, so researching emerging suburbs now might give you a jump start.