Finance Expert Debunks Home Ownership Myth, Suggests Entry on $60,000 Salary

A finance expert is urging Australians to reconsider the prevailing narrative that home ownership is out of reach, asserting that it remains one of the most effective strategies for building long-term wealth. Victoria Devine, founder of Zella Money and a mortgage broker, contends that the belief that renting and owning are financially equivalent is a costly myth.

Devine acknowledges the reality of Australia's housing affordability crisis but emphasizes that avoiding the conversation is detrimental to aspiring homeowners. She asserts that despite changes from previous generations, realistic pathways into the property market still exist.

"Home ownership gives you such a financial advantage," Devine told the Daily Mail. "Every mortgage repayment you make is helping you build wealth in an asset you own. When you're renting, you're paying for housing while also trying to save a deposit at the same time, and that's incredibly difficult in this economy."

Unlike rent, mortgage payments contribute to equity in a property, which can provide future financial security, support retirement, or serve as an inheritance. Devine clarified that her stance is not to shame renters but to highlight the historical advantage of ownership and recognize the barriers to entry.

Rethinking the First Home Purchase

A common pitfall Devine observes is the expectation that a first property must be a forever home. She encourages potential buyers to consider alternatives like townhouses, apartments, or properties located further from ideal postcodes. "I'd rather see someone buy a really good property further out than spend another five years renting while waiting for prices to come down in their ideal postcode," she stated.

Devine also advises against fixating on prestigious suburbs, suggesting that strategic buyers look for areas slated for infrastructure development. Researching planned hospitals, schools, transport links, and community projects can identify locations with strong future growth potential. "They're buying where infrastructure is planned over the next five to 10 years, rather than simply buying what's popular today," she explained.

She also cautions against prioritizing off-the-plan apartments solely for initial value, warning that long-term growth potential can be overlooked.

Deposit and Salary Realities

Another prevalent misconception is the necessity of a 20% deposit. Devine states that many first-home buyers enter the market with around 10%, utilizing government grants, schemes, and lenders mortgage insurance. "Many are buying with around 10 per cent, using government grants, schemes and lenders mortgage insurance to get into the market sooner," she said.

She also highlighted that income alone is not the sole determinant of property ownership. Devine's firm regularly assists individuals earning between $60,000 and $80,000. "It's not always about what you earn. It's about what you save, how you structure your finances and understanding what assistance is available," she added.

Avoiding Costly Errors

Devine warns against letting emotion dictate financial decisions, such as borrowing the maximum amount a bank offers. She advises buyers to consider their desired lifestyle over the next few decades rather than sacrificing present quality of life for the largest possible mortgage.

Skipping essential building and pest inspections to save money is another costly mistake, potentially leading to tens of thousands of dollars in unexpected repairs. Buyers should also resist purchasing solely due to fear of missing out, familial pressure, or superficial finishes. "A beautiful marble benchtop won't help if the building has major defects or flood risk," Devine noted.

She stressed that property should be viewed as a long-term investment, not a guaranteed short-term profit.

Strategic Outer-Market Opportunities

New housing estates on the outskirts of cities can offer excellent value for first-home buyers. While established suburbs may see stronger growth, affordable new developments can serve as a practical entry point. Devine also recommends engaging a buyers' agent with proven experience, local knowledge, and transparent fees, particularly for first-time buyers. "They can save you time, help you negotiate well and, in some cases, stop you making a very expensive mistake," she said.