How to buy a property on a single income

Buying a home on a single income can be challenging, but it is far from impossible. While couples often benefit from shared costs and combined borrowing power, many Australians are entering the property market on their own.

Finder analysis shows that singles face structural challenges compared to couples. Because they cannot split everyday expenses, singles tend to have less savings – $30,932 on average, compared to $50,192 for couples. This gap can make it harder to build a deposit and demonstrate to lenders that a loan is affordable.

The challenges of buying on a single income

The challenge is not just getting into the market, but staying in it. Saving a deposit on one income takes longer, and once a property is purchased, servicing the mortgage can place greater pressure on household finances.

Finder’s data highlights just how tight the market can be for solo buyers. Only 31% of suburbs across Australia are considered affordable on the average single income without leading to mortgage stress, based on median prices, incomes and interest rates.

This means many single buyers need to think carefully about where and what they buy, as well as how they structure their finances.

Ways singles can improve their chances

Despite these challenges, there are practical steps that can make buying a property more achievable as a single person:

• Start with a more affordable property type. Units or smaller homes can provide a stepping stone into the market.
• Be flexible on location. Expanding your search to different suburbs can open up more affordable options.
• Focus on borrowing capacity. Reducing debts and managing expenses can help strengthen your loan application.
• Consider government support. Various schemes, such as Help to Buy and the 5% Deposit Scheme, may allow eligible buyers to enter the market with a smaller deposit.

• Research your strategy. If you want to buy but can’t afford in the area you want to live, you could consider purchasing an investment property and renting.

While the path may be narrower, it is still a viable one with the right strategy.

Taking a realistic but positive approach

Buying solo can require more planning, patience and flexibility than buying as a couple. However, it can also offer independence and the opportunity to build equity over time.

Understanding the challenges – and the options available – can help single buyers make informed decisions and take their first step into the market with confidence.

Reach out to discuss how you could approach buying a property on a single income and what options may be available to you.

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