Giving your you adult children independence while helping them to save for a deposit on their own home

It is no secret that Australia has a very serious housing affordability crisis. This is most evident when you look at the plight of young adults.
After finishing high school, most young adults either start a trade / apprenticeship, or enter university. Long gone are the days where our children leave the family home to “start their lives”.

Renting has become so expensive that even a group of friends find it impossible to rent a place and share the rent together. Where it is possible to rent a place, the cost of rent will likely consume all their disposable income. This means that the young adult has virtually no way to save money for a deposit for their first home.

So how much of a deposit does a young person need to purchase their first home?

We would all like to be able to put down a 20% deposit so we can avoid the banks incredibly costly fees such as Lenders Mortgage Insurance “LMI”. Almost certainly, a first homeowner will need to come up with a minimum deposit of 10%

So how much is a 10% deposit?

CityAverage House Price10% Deposit
Sydney$1,375,000$135,750
Melbourne$997,000$99,700
Brisbane$678,000$67,800
Gold Coast$815,000$85,000

Providing a Tiny Home for your young adult child is one of the greatest things a parent can do for them.

Benefits include:

  1. Allowing them to aggressively save money for a home deposit
  2. Giving them the independence they need to grow as an adult person
  3. Providing them with a safety net.  If they need you, you are right there
  4. Helps the young adult learn critical life skills – how to look after themselves
  5. Free’s up a bedroom in the parents’ house

Unlike a fixed permanent structure such as a granny flat, if you decide to sell your home and relocate, you can take your Tiny Home with you. If you no longer need the tiny home, then you can easily sell it and get all your money back.

While the Tiny Home is a vehicle, it does not depreciate in value like a vehicle. This is because its purpose is that of a residential property. It provides comfortable accommodation, and as such, follows the same laws of supply and demand that houses do.

While we don’t own a crystal ball, given the constantly rising costs of labour and materials, we are confident that as long as you look after your tiny home, you will be able to recoup your initial spend, if not actually make money with the right Tiny Home!

More than just a Tiny Home

Our mission is to deliver beautiful, spacious and affordable Tiny homes for anyone who dreams about an independent free life.