Many young Australians believe rising property prices will prevent them from ever owning their own home. But some astute young buyers are choosing affordable homes in outer-city suburbs and taking advantage of government subsidies to get a foot on the property ladder.

Charles Bates, who is eighteen years old and left school in year 10, has bought a house in Greenvale, which is 20 kilometres from the Melbourne CBD, and part of a housing estate called Lavinia, a development by Villa World.

“I worked for the family business after leaving school and lived with my parents so I had the opportunity to save a house deposit,” said Bates. 

“I was fortunate," he admitted.

Bates was also eligible for the $10,000 Victorian First Home Owner Grant and stamp duty concessions. His parents were so impressed with his dedication to saving the deposit, they volunteered to be guarantors for his loan.

Bates said he initially thought he wouldn't be able to afford to buy his own home, but realised there were suburbs in Melbourne that were within his reach.

“I looked into areas that were affordable and becoming established, providing a good opportunity for capital growth,” he said. 

“The First Home Owner Grant also gave me a leg-up,” he added.

A family member who had bought at Lavinia recommended the estate to him, said Bates.

Bates said his parents agreed with his assessment that property prices in the area would rise over time. “My parents were big supporters," he said.

Lavinia is in North Melbourne and is next to a nature reserve. It's close to shops, public transport, medical centres and schools.

Villa World homes start at $429,000. 

See also:

Generation selfish cuts itself out of home ownership

Median property prices highlight affordability pressures