Who could’ve predicted that an article referencing the humble avocado aka ‘smashed avo’ would kick start a conversation about housing affordability?
Last week demographer Bernard Salt set off a firestorm when he wrote in a The Weekend Australian column that the reason young Australians are unable to save for a house deposit is because of a love affair with that breakfast staple – smashed avocado on toast.
“I have seen young people order smashed avocado with crumbled feta on five-grain toasted bread at $22 a pop and more,” Salt wrote.
“I can afford to eat this for lunch because I am middle –aged and have raised my family. But how can young people afford to eat like this?”
“Twenty-two dollars several times a week could go towards a deposit on a house.”
And today the struggle for home ownership grabbed newspaper front pages again.
Treasurer Scott Morrison told the Urban Development Institute of Australia that the dream of home ownership is moving further out of the grasp of many Australians, with capital cities becoming increasingly unaffordable. As a result, he has made it a priority to look at ways that state governments can incentivise the building of new houses.
With all this noise, many Australians could be forgiven for thinking that they have to give up their brunches to realise their home loan dream, or even just give up completely on home ownership.
But this isn’t true!
From personal experience, I know that saving for a home loan is hard work. It takes a lot of time and effort and while some sacrifices may need to be made, you can still have your smashed avo and a deposit.
Here are my top tips for saving for your dream home:
- The key to being successful in anything is good planning- set yourself time-bound savings goals, analyse your budgets and cut any excess fat
- Look at what you’re willing to sacrifice – what can you live without? What is going to make a real difference to your bank balance if you cut it out?
- It’s all about balance – If you want to keep having your smashed avocado on toast, the opportunity cost may be that you have to skip the movies this weekend.
- Once you have the savings, be smart where you park them – Shop around for better interest rates from different banks and make wise choices about how much you earn in interest. This will help you to reach your savings goal a little more easily.
And of course once you have a deposit saved, look for the cheapest and most transparent loan on the market.
At LoanDolphin we believe in getting Australians the best value home loan- to make the property owning dream a reality.
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Mortgage brokers, lenders and banks bid to win customer’s business on LoanDolphin, giving prospective home owners access to a better interest rate for their situation. Australians using the free online platform have already begun to save tens of thousands of dollars on their mortgages.
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Ranin Mendis is CEO and co-founder of LoanDolphin