Latest news with #Megginson
7NEWS
10-07-2025
- Business
- 7NEWS
First home buyers: how to save a 5 per cent deposit in six months for a $600k home
The countdown is on for first-time buyers hoping to enter the market with as little as a 5 per cent deposit, thanks to upcoming changes to the federal government's First Home Guarantee Scheme (FHGS). From 1 January 2026, the program will relaunch with expanded eligibility, opening the door to many more would-be homeowners, including scrapping income caps and opening the FHGS to permanent residents and joint applicants who haven't owned property for some time. How is the First Home Guarantee Scheme changing? The revamped FHGS will continue to allow eligible buyers to purchase a property with just a 5 per cent deposit, while the government steps in to guarantee the remaining amount, removing the need for costly Lenders Mortgage Insurance (LMI). This means if you plan to buy a $600,000 home, you'd only need to front a $30,000 deposit. But beyond the low deposit, there's some pretty significant shake ups. The government is scrapping the income cap: buyers are no longer restricted by income thresholds. Previously, this was capped at $125,000 for a single and $200,000 for joint applicants. Come January, there will also no longer be a property price cap. Purchase price limits will be removed, subject to lender assessment. And finally, there is now extended eligibility: individuals who have not owned property in the past 10 years, including permanent residents, can apply. A great opportunity, with a caveat Personal finance expert at Finder, Sarah Megginson, says the scheme is a game-changer, but buyers need to act now to get their finances in order. "This plan will give all first-home buyers access to 5 per cent deposits when buying a home, making the prospect of home ownership far more realistic for some who want to enter the market," she said. For example, if a property costs $850,000, a buyer needs to save a deposit of $42,500. "Without this plan, they would also need to fork over a huge sum for Lender's Mortgage Insurance, which could be upwards of $20,000." But Ms Megginson also warns that property competition will heat up even more. "All first-time buyers will have access to this, so it enables a large number of people to buy a home, but does nothing to address supply," she said. "A policy like this creates a lot of demand - which could see property prices in the affordable range increase, as first-time buyers battle each other to get into the market." Your six-month saving window: Strategies to save $30K If you want to hit the ground running when the scheme relaunches in January 2026, the next six months is your window of opportunity. If you're on the average Australian salary of $100,000, your purchasing power sits around the $600,000-mark, meaning you'll require $30,000 for a 5 per cent deposit. Ms Megginson says the key to building a $30,000 deposit quickly is breaking it down into smaller, manageable milestones. "Saving $30,000 sounds like a massive mountain to climb, but smaller financial goals are easier to achieve and as you tick each one off, it gives you the momentum to keep going." You're aiming for $5,000 per month, and to understand your personal financial picture, there's no way around creating a budget. "Tracking where your spending is going is key to plugging those money leaks," says Ms Megginson. "Take a look at your spending and split it into 'nice to have' and 'need to have'. Anything in the 'nice to have' category is a contender to cut back on." Here are some more strategies to get serious about saving. Move back home While it won't be possible for everyone to take advantage of the privilege of moving home, if you have the ability to move back in with your parents or another family member and stop paying rent, you should absolutely take it. Rents skyrocketed over the past few years, with Australia experiencing its longest stretch of continuous rental price growth in history, far outpacing wage growth. No matter which way you slice it, rent takes up the biggest proportion of would-be homeowner salaries, keeping renters in a vicious cycle where they're unable to make headway on a house deposit despite demonstrating the financial ability to pay the equivalent of a mortgage. Removing rent from the picture is undisputedly the way to turbocharge savings. "It's short-term pain for long-term gain. It can help you save a fortune on rent and other bills to fast-track your savings goal," Ms Megginson said. If you're in Sydney, for example, this one move could save you between $1700 and $3250 a month on rent alone, if your rent sits between $400 and $750 per week. House sit or change rentals If that's not an option, and you mostly work from home, consider house sitting as a rent-free alternative. While it can be tricky to line up house sits perfectly, and the extra admin of applying for sits and then caretaking animals can be stressful, it's a creative way to stop paying rent (or even take a break while living with your parents). The other option is to reduce your rental footprint by either sharing with more housemates, or changing rentals to a smaller property or more affordable area. Trim your lifestyle spend No one wants to go without their little luxuries, but remember, it's only for six months. "Really, it's about looking at your overall lifestyle spending," said Ms Megginson. "If you're serious about saving, you need to catch public transport instead of Uber, and stop getting food delivery altogether - it's seriously so expensive and so much cheaper to buy takeaways without the Uber premium. Eliminate any 'buy now pay later' accounts, too." Subscriptions are the other place to look. If you're signed up to three or four different streaming services, for example, it's time to cull it down to one. You can even change that one platform every month or two, rotating through them all and catching up on shows. But Ms Megginson is also quick to point out that this doesn't mean cutting out everything fun. "Make sure you're not living off 2-minute noodles and stripping all the fun from your life! You don't have to sacrifice all the things that bring you joy. "Just be mindful with your spending, so that when you invest in lifestyle extras - like takeaway coffee, a gym membership or Sunday brunch - you're spending on something you really enjoy, not just spending out of habit." Evaluate and renegotiate your bills Take stock of your household bills to ensure you're not overpaying for everyday services, from energy and health insurance to mobile phone plans. "Finder has a Financial Fitness Challenge that runs through this process, where the average person without a home loan can save around $4,000 per year by comparing their household bills and getting a better deal," said Ms Megginson.
7NEWS
04-07-2025
- General
- 7NEWS
One in three households can't afford property repairs
Australian households are unable to pay for critical home repairs such as broken showers, busted appliances and major structural repairs, due to the rising cost of living. New research from comparison site Finder has found 32 per cent of Australians admit they are currently avoiding or putting off home maintenance and repairs because of soaring basic living costs. This equates to 3.2 million properties that are being neglected due to affordability issues, from busted air conditioning units to leaking pipes, not only impacting people's basic living conditions but posing serious safety issues. The survey of more than 1000 households revealed plumbing issues topped the list of the most neglected maintenance issues, with one in ten people putting off repairs for toilets, sinks and showers. Meanwhile, 10 per cent of people can't afford to replace broken appliances, and another 10 per cent are being forced to ignore electrical problems because they simply don't have the means to pay for them to be fixed. The findings are frightening given electrical faults and faulty electrical appliances are one of the leading causes of house fires in Australia. Finder's personal finance expert, Sarah Megginson said it was troubling that almost three million Australians are not maintaining their properties because of rising living costs. "That amounts to a lot of run-down homes in our neighbourhoods, which could have an impact on property values and potentially lead to some homes having safety issues," she said. The research also found eight per cent of households are unable to afford major structural repairs, while another eight per cent are going without pest control and interior maintenance due to financial pressures. Megginson said attempting to keep up with home maintenance has become a huge burden for a growing number of households. "People are struggling with rents and mortgages and other living expenses, pushing home maintenance to the bottom of the list," she said. She said for many Australians, housing is one of the biggest expenses in the family budget. "From rates to insurance to pest control and then repairs and maintenance, it can feel like the home becomes a never-ending money pit. "But the cost of letting a house become dilapidated can be far greater in the long term. What starts as a small issue can escalate into something much more complicated and expensive to fix down the track." Megginson said homeowners that do not keep their property maintenance up to date also risk their insurance being voided. She said, as a rule of thumb, homeowners should be prepared to allocate a few thousand dollars per year for standard maintenance and repairs and that establishing a house emergency fund in their family budget is a wise idea. Finder research has found the average home insurance quote in Australia is $2,874 but it can vary greatly.
Sky News AU
26-06-2025
- Business
- Sky News AU
Bleak new data from comparison site Finder reveals how critical tax returns are for Aussies during cost of living crisis
Bleak new data has revealed just how critical upcoming tax returns are for millions of Aussies that continue to struggle with crippling cost of living pressures. Fresh research from comparison site Finder shows how Aussies plan on using their tax return – which is estimated to be more than $1500 for those expecting a refund. Of those anticipating a refund, 52 per cent said the cash injection will go straight into their savings while 19 per cent said they would use the windfall to pay for household bills. Just seven per cent said the cash was going towards a holiday, while six per cent were paying off their mortgage and five per cent were going shopping. It comes as 47 per cent of Australians expect a return – equivalent to more than 10 million individuals – after July 1. Finder's personal finance expert Sarah Megginson said households were focused on covering the essentials with their tax return as price pressures ate into budgets. "It's been a tough stretch for households, and many are counting on their tax refund to ease the pressure on their budget just a little,' Ms Megginson said. "For a lot of people, a refund acts as a kind of forced savings – especially when they're only just making ends meet each month." Many Aussies also anticipate using their tax return to pay off debts. About four per cent plan to pay off credit card debt with their return while one per cent said the cash would be used to pay off Buy Now Pay Later loans. Another two per cent said they would invest their return in shares. Ms Megginson said many families had eaten into their savings over the past few years amid struggles with soaring inflation. "Millions of Australians have had to dip into emergency funds just to pay for basics like petrol and electricity,' she said. "A few thousand dollars back at tax time can be a real lifeline for families working to rebuild their financial footing. "The peace of mind that comes with having an emergency buffer can't be overstated – so using a tax windfall to rebuild that safety net is always a smart move." The cumulative impacts of inflation over the past three and a half years means things are about 17 per cent more expensive than in late 2021. Finder's new research on how Aussies will use their tax return follows the comparison site revealing a total of $15.3 billion will go back into the pockets of everyday shoppers across the nation after tax returns are issued. Almost one in four respondents to Finder's survey said a tax refund was very important to their financial health while 41 per cent said the cash was somewhat important.
7NEWS
26-06-2025
- Business
- 7NEWS
One in five first home buyers turn to the bank of Mum and Dad
With housing affordability an ongoing issue in Australia, with house prices continuing to outpace incomes, many young Australians are turning to their parents for help to buy their first property. New research from comparison site Finder has revealed that almost 20 per cent of new home buyers dipped into the bank of mum and dad to purchase their new home. The Finder's First Home Buyer Report 2025 - based on a survey of more than 1000 first home buyers in Australia - found almost 1 in 5 (17 per cent) of first home buyers received financial help from their parents to save their deposit. Know the news with the 7NEWS app: Download today This equates to almost 20,000 first home buyers a year who are now lucky enough to receive financial assistance from their parents. The report also revealed that the proportion of new buyers tapping into the bank of mum and dad has increased significantly from just 11 per cent in 2022. Sarah Megginson, personal finance expert at Finder, said millions of Aussies are now counting on the bank of mum and dad to secure a home in Australia. "The bank of mum and dad has become one of the biggest unofficial lenders in the country," Megginson said. "For many young Australians, homeownership feels like a dream that won't be realised, unless you've got parents who can tip in some financial help - sometimes up to six figures," she added. She said first home buyers with parental help aren't just getting into the property market earlier, they are also getting in "with more savings, bigger budgets, and a huge head start." The report reveals first home buyers who receive financial support from their parents had 41 per cent more money left over in savings after buying their first home, compared to those who didn't receive any money from their parents. The research also found that for buyers without family support, 40 per cent took five years or more to save a deposit. In comparison, among buyers who received assistance, just 29 per cent took five years or more to save for a house. The other top strategies young Australians use to save for their first home include living at home with their parents (21 per cent of first home buyers); spending less on dining out (20 per cent); and taking on a second job (17 per cent). Meanwhile, the number of first home buyers who said they simply saved slowly over a long period of time fell from 23 per cent in 2022 to 17 per cent. While increasing numbers of parents are supporting their children to buy their first home, Megginson warned that too much generosity from parents' could hurt their own standard of living in retirement. "Supporting your kids is part and parcel of being a parent, but you need to do it in a way that's sustainable for everyone," she said. "I've heard of parents who end up working longer than they planned, delaying retirement or leaving themselves financially short once they retire, because they were too generous when giving their kids a financial leg-up," she warned. The report also found that the percentage of first home buyers who bought out of a worry that property prices would soon become too expensive has increased from 31 per cent in 2022 to 38 per cent in 2025. Meanwhile, 60 per cent of first home buyers say recent interest rate cuts influenced their decision to buy now. However, the survey also revealed that nearly two in three, or 65 per cent of first home buyers, spend or expect to spend 30 per cent or more of their income on mortgage repayments, placing them in mortgage stress.
Sky News AU
18-06-2025
- Business
- Sky News AU
More than nine million Australians struggling with less than $1000 in the bank, new research from Finder reveals
More than nine million Australians are one major bill away from financial ruin, shock new research from comparison site Finder has revealed. A new survey found 43 per cent of Australians have less than $1000 in their bank account, putting them just inches away from breaking point. Of those with less than a grand in savings, the average account balance was $215 which is the average weekly grocery bill for NSW households according to Finder. More than half of respondents admitted they lived month to month and almost one in five - equivalent to 3.8 million people – said they have $0 in savings. Finder's personal finance expert Sarah Megginson said mounting cost of living pressures over the past few years had crippled many families' budgets. 'The nation's savings crisis has hit a breaking point, and it's pushing millions to the edge of financial ruin,' Ms Megginson said. 'For many households, even an unexpected minor expense like a cracked windscreen or an emergency trip to the dentist, it would be enough to cause serious financial stress.' While millions have no savings, there is wide disparity between the haves and have-nots in Australia. Finder's research showed the average Australian holds more than $43,000 in the bank, putting them in a safe financial position if an unexpected expense arrives. Australians with low savings, however, are at higher risk of becoming overwhelmed with crippling debt due to a lack of a financial buffer, Ms Megginson said. 'While tools like credit cards, personal loans, and buy-now-pay-later services can be helpful, using them for everyday expenses can quickly lead to a spiralling financial situation,' she said. Finder's shock revelation comes after the comparison site found many households were desperate for their tax refund. Almost one in four respondents to another Finder survey said a tax refund was very important to their financial health while 41 per cent said the cash was somewhat important. About 47 per cent of taxpayers expect a tax refund after July 1 and the average taxpayer anticipates a $1519 refund. This will deliver a total of $15.3 billion back into the pockets of everyday shoppers across the nation. Finder's head of consumer research Graham Cooke said the cash injection will be critical for Australians with little savings. 'Many households living month-to-month will be particularly keen to access these funds,' Mr Cooke said. 'For those struggling with the rising cost of living, a cash boost will offer some necessary financial reprieve.'
