Practical Strategies to Reach Your Property Goal
For many Australians, buying a home remains one of life’s most important financial milestones — yet it has never felt harder to achieve. Rising property prices, higher living costs, lending rules and taxation can make saving a home deposit seem overwhelming.
The good news is that while the path to home ownership is challenging, it is still achievable with the right strategy. Whether you are buying your first property or upgrading to your next home, careful planning can significantly shorten the journey.
Below we outline practical, proven home deposit saving strategies and the common traps to avoid.
Why Saving a Deposit Is Harder Today
Housing affordability is influenced by several factors at once, including:
- increasing property prices
- higher cost of living
- tighter lending rules set by regulators such as APRA
- low interest rates on savings accounts.
Low interest rates create a double challenge. They push property prices higher while simultaneously reducing the return earned on savings. Many savers find that their deposit grows very slowly even when they are disciplined.
In fact, research consistently shows a large proportion of Australians either struggle to save or cannot save at all. Competing financial commitments often take priority, and home ownership slips further away.
This is why using disciplined budgeting and structured saving strategies is so important.
The First Home Super Saver (FHSS) Scheme
One of the most powerful deposit-saving tools available to eligible buyers is the First Home Super Saver (FHSS) Scheme.
The scheme allows first-home buyers to build part of their deposit inside superannuation and benefit from the tax advantages that apply to super.
How It Works
Instead of saving entirely from after-tax income in a bank account, you contribute money into your super fund specifically for a future home purchase.
Key features:
- Contribute voluntary amounts into super
- Contributions are taxed at 15% (often lower than your personal tax rate)
- You can apply to release eligible contributions later for a deposit
- Up to $15,000 per year can be contributed (with an all-time scheme maximum contribution, of $50,000 total)
- You generally have 12 months after release to purchase a home
Because contributions may be made from pre-tax income via salary sacrifice, many people accumulate savings faster than they could in a standard savings account.
Bear in mind that scheme funds saved but unused, remain in super and continue supporting retirement savings.
Important Eligibility Rules
The FHSS Scheme is strictly regulated. You must:
- never have owned residential property in Australia
- not have previously accessed FHSS funds
- use the funds to purchase a residential property you intend to live in
(Some prior ownership situations may be allowed in cases of financial hardship, but professional advice is essential before relying on eligibility.)
Not all super funds offer the scheme, and contribution caps must be managed carefully.
Standard Savings vs Super Saving
Consider saving $500 per month in a bank account. You contribute after-tax income and pay tax on the interest earned.
By contrast, contributions through salary sacrifice into super are less accessible. Some people prefer the flexibility of savings accounts or term deposits. The right approach depends on your circumstances and comfort level.
Should You Invest Your Deposit?
When savings accounts offer low returns, many buyers consider investing their deposit to accelerate growth.
This can help – but it introduces risk.
Growth investments such as shares and property historically outperform cash over longer periods. However, they fluctuate in the short term. If markets fall just before you intend to buy, your deposit could shrink at exactly the wrong time.
A balanced approach may involve:
- keeping near-term purchase money in cash
- matching your investment risk allocation to the expected purchase timeframe
- avoiding speculative or illiquid investments.
A Realistic Approach
Imagine a couple who have started saving but expect it will take years to reach their deposit target. They can:
- budget carefully
- automate savings
- use FHSS contributions
- consider appropriate investment exposure.
The biggest risk is emotional decision-making. Investing aggressively when markets rise, or retreating to cash during downturns, can bring success – but introduces serious timing issues. Discipline and a structured plan are essential.
Tax also matters. Investment income, dividends and capital gains may affect your outcome positively, income tax will detract from the outcome, but franking credits on dividends and capital gains tax discounts on realised asset disposals, can mitigate some of the tax burden.
Build a Strategy, Not Just a Savings Account
Saving a deposit should not rely on willpower alone. It works best when integrated into a broader financial plan that considers:
- your income and expenses
- superannuation
- tax position
- investment time horizon
- long-term financial goals.
Different strategies suit different households. Some benefit most from the FHSS Scheme, others from structured savings plans, and some from carefully managed investing.
Final Thoughts
Buying a home is still achievable — but it now requires strategy, structure and patience rather than simply saving what is left over each month.
A clear plan helps you:
- save faster
- avoid costly mistakes
- stay focused on your goal
- reduce financial stress.
At Continuum Financial Planners, we work with clients to design personalised savings and investment strategies aligned with their broader financial future — not just the purchase of a property, but long-term financial security as well.
If home ownership is part of your goals, we can help you build a structured pathway toward it. To arrange an appointment with one of our experienced financial advisers –
- phone our office on 07-3421 3456, or
- at your convenience, use the linked Book A Meeting
(This article was originally posted by us in February 2026.)