Young Australians using crowdfunding campaigns to save for their first home

By
Amelia Barnes
October 17, 2017
Duncan Hellmers has bought his first property following two successful crowdfunding campaigns.

It takes more than a “good job” to save for a first home. Increasingly priced out of the property market, first-home buyers are looking to alternative methods to save for a deposit, in conjunction with a full-time occupation. 

Designer Duncan Hellmers, 26, has recently purchased his first apartment in Sydney’s Lane Cove following two successful crowdfunding campaigns.

Using crowdfunding platform Kickstarter, Hellmers raised close $120,000 for his two ‘Blub‘ clock designs, enabling him enough money to save for a first home deposit. 

“I have a full time job that was contributing to my regular savings, but on weekends I dedicated my time towards getting my own product out there,” Hellmers says.

“I wouldn’t have had my deposit ready as quickly as I did without doing the extra work.”

Student Caitlin Argyle, 17, recently attempted her own crowdfunding campaign on website Indiegogo.

The campaign asked for donations towards Argyle’s $48,000 home deposit, in exchange for rental accommodation in the Gold Coast home.

“My parents were the ones who told me how crowdfunding worked and at first I didn’t take much notice, but after a couple of weeks I thought what could I crowdfund?” Argyle says. 

“Then my first investment property came about…I knew it would be different, but I like to be unique and try new things, and in the end I had nothing to lose!”

As an added incentive for funders, for every 10 weeks of accommodation booked, Argyle vouched to provide one week’s accommodation free to a family in need.

“I have had a lot of people thinking I’m just scamming off others for a house of my own, but I’m really not,” Argyle says.

“Investing my money is the best thing to do as it can eventually create passive income, which can give you a flexible lifestyle.”

After two months, donations were not enough to reach Argyle’s target, raising $6125.

“I will continue to save, save, save; you never know what could happen though as there are new ideas coming out every day,” Argyle says.

“I know I eventually want to be earning passive income and be able to travel when I want.”

Home sitting and pet sitting are other popular options for budding first homebuyers looking to save on rent.

Public service worker Clare Lennox, 35, lives rent-free in exchange for pet sitting through website Mindahome.com.au.

“Initially, I didn’t necessarily believe I could achieve a deposit on my own [but] now I am positioned to service a mortgage and am much more open to moving out of Melbourne to make it a reality,” Lennox says.

The arrangement has also enabled Lennox to “test-drive” multiple living situations, allowing her to compare the benefits of apartment living in inner Melbourne with  living in small house in a regional centre.

“House sitting has added to my flexibility and I now feel I could live in either situation,” Lennox says.

“It’s helped me gain a better understanding of how I want to live, including considerations around pets, public transport, bike accessibility, garden and open space requirements, plus kitchen and living space ideas.”

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