Melbourne first-home buyers’ plan to pay off their house within six years

First-home buyers Siri and Sai purchased a house in Melbourne’s west last year. The couple are aiming to pay off their mortgage within six years – find out how they plan to do it.

Siri Chandana Gonuri and Sai Abhinav Sita bought their first home last year. Picture: Jason Edwards.

First-home buyers Siri Chandana Gonuri and Sai Abhinav Sita are reaping the awards of a dedicated saving and budgeting plan.

The wife and husband, a cloud security engineer and IT operations and systems administrator,

both completed their masters’ degrees in Australia after migrating from India.

After individually putting the bulk of their salaries towards savings, they bought a house in the Melton area at the ages of 27 and 28, in April 2024.

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“Our first priority was to be close to public transport, because I travel to Melbourne’s CBD for work,” Ms Gonuri said.

They also wanted to find a home close to childcare and schools, in case they have children.

“And one of the most important factors was that we wanted bigger land,” Mr Sita said.

The couple, who describe themselves as plant lovers, wanted a garden they could enjoy.

After two months of searching for their first abode, they purchased using a 10 per cent deposit.

Impressively, they aim to have their house – which is handily located 2km from the local train station – paid off within six years.

The couple wanted to buy a house close to public transport, as Ms Gonuri works in Melbourne’s CBD. Picture: NCA NewsWire/David Crosling.

They have implemented several measures to help them reach this goal.

Ms Gonuri said that in addition to only eating outside of home once a week, they will attend the restaurant or cafe in person to avoid delivery fees.

“We try to buy groceries at half price,” Mr Sita added.

And they have made a list of priorities for the house, such as furniture, and buy an item once every three months.

The husband and wife said they made sure to set a firm budget before searching for a house to buy.

“It’s important to be good with numbers before you even start searching for property or go to a mortgage broker, be clear on what is the maximum you can afford without stretching yourself,” Ms Gonuri said.

Couple Siri Chandana Gonuri and Sai Abhinav Sita in their garden. When looking to buy, they wanted a decent-sized garden and also a well-ventilated home for all their indoor plants to thrive in. Picture: Jason Edwards.

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They would often check online calculators offered by banks and real estate websites to figure out how much a home would cost when stamp duty and insurance were added onto a mortgage.

Mr Sita said that another way to save on money, especially in the long run, was to buy a home for less than a lender’s maximum loan.

“One tip, is if the bank has given you a home loan of $1m, don’t buy a home for the whole amount,” he said.

Mr Sita added that have a savings buffer of at least a few thousand dollars was another smart move when buying a home.

Buying a home can involve a lot of hidden costs including insurance and stamp duty.

The couple considered homes in Bacchus Marsh and Wyndham Vale when looking for a place, with those suburbs offering homes with larger backyards.

“We were very tempted by another 591sq m home priced at $720,000-$730,000 but the stamp duty was a lot higher,” Ms Gonuri said.

“Seeing that higher mortgage, we stepped back.”

They are now happily ensconced in their new home within the Melton municipality, which is set on a 448sq m block.

PropTrack’s January Home Price Index shows Melbourne has a $779,000 median dwelling price, a figure including houses, units and apartments. Picture: NCA NewsWire/Damian Shaw.

Melbourne-based mortgage broker and Tulip Finance’s founder and chief executive, Vinay Bhardwaj, worked with Mr Sita and Ms Gonuri during their buying journey.

For households wanting to save extra money to put towards their mortgage or avoid mortgage stress, Mr Bhardwaj advised them to review all monthly expenses – such as looking for subscriptions no longer in use, unnecessary purchases or opportunities to adjust spending such as dining out versus cooking at home.

He also recommended revisiting home and car insurance policies to ensure you were getting the best deal.

“A thorough review of their current mortgage, including interest rates, is essential,” Mr Bhardwaj added.

“Additionally, I evaluate other financial commitments, like personal loans, car loans, and credit cards, to determine if debt consolidation might offer a more manageable solution.”

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Originally published as Melbourne first-home buyers’ plan to pay off their house within six years