Inside one family’s game plan to get their first home loan quick

One family has a plan to get ahead of the competitive housing market in just six months – but they’re not sure it’ll be enough.

Megan and Paul Bell have only just started looking for homes, but they’re already realising it’ll be tougher on their wallets than they’d hoped.

With their rental agreement ending in February, the couple and their two kids are beginning to prepare for a move. The two are considering what it would take to buy a permanent family home – and are hatching a plan to make it happen sooner, rather than later.

“It’s the Australian dream, really, right? To own your own home,” Ms Bell said.

Megan and Paul Bell are beginning to look for a home to raise their kids, Kyla and Arnika – but they’re concerned with how much they’ll need to do it. Picture: Liam Kidston

But people in rented households are only able to afford one in ten houses in 2024, according to PropTrack’s latest Housing Affordability Index.

It takes a combined annual income of $639,461 to be able to afford 95 per cent of Queenlsand’s properties. Meanwhile, those earning $89,438 a year can only afford 10 per cent of these homes.

The Bells predict by the end of the year, they’ll be earning close to $180,000 annually. An income of just over $200,000 can afford half of all available homes, but the Bells also need to be selective about what is good for their children.

“We do have two young kids,” Ms Bell said. “So we want to be able to have a stable enough home to be in there until they finish [high] school.”

The Bells have considered dipping into their superannuation fund, to afford the home loan deposit they’ll need to get a place quick. Picture: Liam Kidston

PropTrack senior economist Angus Moore said it takes “just under five-and-a-half years” to save a deposit of 20 per cent for a median priced home. With only six months to spare, Ms Bell said they’re considering eating into their superannuation.

“Being able to access the super has been really handy for me,” she said. “If we weren’t able to do that, then that would be another conversation.”

Property software company PEXA reported the median deposit amount for Greater Brisbane buyers was $85,163, for the 2023 financial year.

The Bells estimated they will be able to provide $30,000 towards a deposit. Adding a First Home Owner grant of $30,000, this would give them enough for a deposit on some homes, but leave them $25,163 short of the median.

The family said they hope to get a house on their own without family assistance, but know they’ll need to make some compromises. Picture: Liam Kidston

Ms Bell said if they require more money for a deposit past that point, they may have to lean on family to help them over the line.

“We both have very supportive families, and I know how tough it can be, and they understand how tough it can be as well,” she said. “I feel very thankful that we, Paul and I both, actually have that. Because I know there are couples out there and there are people out there that don’t.”

To be able to pay off their mortgage, the Bells suspected they would have to make mortgage repayments closer to half their weekly income, rather than a third. Ms Bell said they’re prepared for this, and are willing to live further out of Brisbane if it helps them buy an affordable home.

“[I had] a great family home that we grew up in,” she said, “and we didn’t have to keep moving and changing”.

“We were stable in that home … that’s what I want for my kids.”

Originally published as Inside one family’s game plan to get their first home loan quick