Since buying and renovating a unit in Box Hill, Audrey hasn’t looked back. Scott, on the other hand, is in the thick of buying his first home.

Deciding to buy your own home is only the first step in getting into the property market. Before you take the plunge, there are cold hard financial facts to consider. The very first monetary hurdle is raising the deposit for a home loan. While the first homeowner’s grant (a one-off grant of up to $7000) will take the sting out of stamp duty tax, you’ll still need to find a lump sum to make the deposit. For many, this is a major stumbling block.

Audrey had been in the rental market since moving away from home but found it impossible to save the money for a deposit. The solution was a strategic move back with the parents to save.

“I’d lived in Fitzroy North, Richmond - all around the inner city - and certainly buying in those areas was the plan once I’d saved up the deposit, but I just couldn’t afford it on my own,” she says.

There were other benefits to Audrey’s move back home. Her mother has a wealth of experience renovating properties, and that knowledge was indispensable during the hunt for an affordable property.

She eventually settled on a double storey, one-bedroom unit with a courtyard in Box Hill. The price was $180,000.

“When mum took me around there I honestly thought she was joking – it was such a dump,” says Audrey. “Just to clean out the old flooring, the old tiles, the dirty carpets and the old kitchen took three loads to the tip. But once we had the shell then we started to fix it up – I did everything; replastered the walls, put in new carpets - and now it’s a very modern, homely place.”

Audrey’s renovations came in at $20,000, which included the addition of a second bedroom to her unit. A subsequent re-evaluation put the property at $260,000. That’s not bad for a two-year investment.

Property values and affordability are also on Scott’s mind as he enters the market in search of his dream home. But while Audrey has been content to make the lifestyle adjustment required to live in Box Hill, Scott is adamant about staying in the Prahran/ Windsor/South Yarra area.

“People have suggested I buy further out and move back in (at a later date), but I don’t think I would be personally happy – you might have a bigger place, but for me I don’t think it would work,” he says. “I would rather set myself a budget that suits my lifestyle and stick to it.”

Scott has relied on friends and family for useful tips and information.

“I had a friend who worked in real-estate so I harassed them. I also read lots of stuff on the web and I even went to a seminar once,” he says. “When I first started, I just overloaded myself with information – every time I went to an open viewing, I asked real-estate agents what they thought and what the deal was.”

Scott has given himself three months to buy and is optimistic at the number of properties on the market at the moment.

“It’s just a matter of finding something,” he says. “I’m open to renovate – I like the idea of seeing how good I could make a place.”

by DAREN POPE