For those that missed the punchline, an Australian millionaire recently suggested millennials stop buying an Avocado Smash to save for a house deposit and his comments went viral around the globe (read the article here). Now that the Queensland First Home Buyers Grant of $20,000 has been extended until 31st December 2017, I wondered how long it would take to save $20,000 if I stopped buying avocado on toast.
The answer, 9 years… Assuming I paid $22 for an Avocado smash and I had one twice a week, every week of the year.
There could be an easier way if you are a First Home Buyer. Some lenders may let you ‘pretend’ the $20,000 grant is your own savings so if your ‘real’ savings is small, buying or building your First Home today might just be possible. The lending criteria is very complex and you should speak to a mortgage broker who specialises in First Home Buyers as the wrong advice could mean the difference between owning your own home or not.
Here are some of the main requirements to qualify for the government $20k grant:
- You must be buying or building a ‘Brand New’ home under $750,000
- You or your spouse must not have previously owned property in Australia before
- You must live in the house as your primary residence
- You must be 18yrs old
- You must be an Australian Citizen or Permanent Resident (or applying with someone who is)
You should refer to the Queensland First Home Owners Grant or contact the Qld Office of State Revenue directly on 1300 300 734 to find out if you are eligible before considering or discussing your finance options.