How I Bought a House at 21 Working at McDonalds
tl;dr: Bought a small 2-bedroom unit for 200k in Adelaide. Saved 80k for deposit by working 3 fast food jobs concurrently (50+ hours a week) and going to uni full-time.
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Firstly, why?
There’s a LOT of information out there saying why you shouldn’t buy property at a young age. But for me, I was interested in buying as I would prefer to spend money on a mortgage rather than paying the same amount in rent. It’s not something I would recommend to everyone but I am happy with my decision as it fits my personal circumstances.
Secondly, HOW?
I’ve been saving for a deposit since I was 15 so my savings rate varied a lot (at first I was only earning $9 per hour), but usually I tried to save about 2k per month. My expenses were $300 per week ($150 in rent as I live with 3 other people), $50 on food and $100 towards bills / petrol / rego / etc. Sometimes I will spend more on food if I’ve had a difficult week but I try to save as much as I can.
Being a low-income, single person on an unstable, casual income (with full-time uni study as well) meant that saving for a deposit took a LOT of hard work. It meant working an 8 hour shift at one restaurant and then going straight to an 10 hour shift at another restaurant and then going to home to study for an exam the next day. It meant surviving off leftover fries and 3 instant coffees a day rather than spending money on food. It meant taking the bus for 2 hours (and watching uni lectures at the same time, of course) instead of buying petrol.
Technically, you are not supposed to work at more than 1 fast-food place at a time (because they are competitors), but I just didn’t tell my bosses. It was a bit tricky to make sure all my shifts were at different times, so I had to do a lot of swapping shifts and moving things around.
Right before I applied for the loan, I got a promotion at one of my jobs, to a management position, so I had 1 full-time job only (otherwise I wouldn’t have been approved).
How did you work so much while also attending uni?
I barely attended any physical tutorials or lectures. I just studied at home (usually between 2am-5am after getting home from work), submitted my assignments and that was that.
That sounds terrible!! Didn’t you burnout? Don’t you want to enjoy your youth?
No. I’m a machine, baby.
Ha ha. Just kidding. Yes, it was bloody EXHAUSTING (working 14 hour shifts without any breaks, food or water), but overall, I’m glad I did it. I genuinely loved my job (working in fast food is HARD but it’s also really rewarding) and I love knowing that I’m paying off my own mortgage rather than paying off someone else’s.
Do you have any tips for other young people in a similar situation?
Firstly, comparison is the theft of joy. While I was busy busting my ass to buy a tiny unit with barely any windows, I also have a few friends who’s parents bought them a house, despite never having paid for anything or worked a day in their life. It can be easy to feel frustrated at this, but keep at it! It’s impossible to be “behind” in life when nobody starts from the same place.
Secondly, there’s a reason why “make a budget” is at the top of every one of those “how to buy a house” articles on Domain. I like to track my actual vs planned expenses on Excel (I love Excel) to see where I can save money. I’m also a big fan of repayment calculators.
Thirdly, do your research on the property market. Real estate agents and banks were VERY rude and condescending (because of my age and occupation), so coming prepared will show them that you mean business! Often real estate agents would refuse to talk to me or give me one-word answers which I thought was quite rude. Research as much as you can and come to your bank appointments prepared with all the necessary documents. You want to make it EASY for them to approve your loan. Make sure you understand the property buying process and know how to make an offer.
Personally, I didn’t bother with a broker as I did lots of research on the best home loan for my situation and then just went directly to that particular bank.
To clarify: (Edit) I have a fantastic life. I love my job, it gives me real purpose and joy. I have a beautiful girlfriend, who I see everyday, and amazing friends, who I see at least once a week.
I do have hobbies. I go for a run everyday, which I love, and I’m studying French. I do really well in university and have won several awards, including a scholarship. Before the pandemic, I travelled overseas several times a year, which I love.
For me, everything was worth it. I love my little apartment and it’s been so fun to decorate it and invite friends over. I love having my own space.
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