Ali’s Journey to a First Home on a Modest Salary

Ali’s Journey to a First Home on a Modest Salary

Young man looking at house listings and calculating mortgage options in a simple home office.

Buying a home in Australia feels out of reach for many, especially those earning a modest income. But 33-year-old Ali, a retail manager from Adelaide, made it happen — without a six-figure salary or a massive inheritance.

🏡 The Challenge: $65K Salary, Rising Prices

With an annual income of $65,000 and rising real estate prices, Ali knew he had to be smart, patient, and creative. His dream? A two-bedroom townhouse near public transport. The price? Around $450,000.

📈 Step 1: Saving with Precision

Ali committed to saving at least $1,200/month using the First Home Super Saver Scheme (FHSSS). Over 2 years, he accumulated $32,000 in usable savings thanks to tax-advantaged contributions.

🛠️ Step 2: Leveraging Government Help

Ali qualified for the First Home Guarantee through Housing Australia, which allowed him to buy with just a 5% deposit and no LMI (Lenders Mortgage Insurance).

💳 Step 3: Keeping His Credit Clean

  • No personal loans or high-interest debts
  • Used credit card responsibly (< 30% utilization)
  • Checked credit score every month with ClearScore

🏠 Step 4: Smart Property Hunt

He used tools like realestate.com.au and Domain with filters for affordable areas, future infrastructure, and walkability.

🎉 The Outcome

Ali secured a two-bedroom townhouse in Woodville Gardens with a $23,000 deposit. His mortgage repayments are $1,670/month — slightly higher than his previous rent, but manageable with a structured budget.

🧰 Tools Ali Used (Affiliate Opportunities)

  • ClearScore: Credit tracking & improvement
  • Frollo: Home deposit savings automation
  • Realestate.com.au: Property alerts + suburb insights

💡 What You Can Learn from Ali

  • Government schemes can make homeownership possible
  • Discipline and planning beat high income
  • Your credit score matters more than you think

Next story: Sophie’s Budget Makeover — How She Saved $400/Month With a Finance App

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