Young Australians using crowdfunding campaigns to save for their first home

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.”