Buying a home when you’re single: the challenges and how to tackle them.

Over 2024 the housing market became increasingly competitive, making the journey to home ownership particularly challenging, especially for solo buyers facing the uncertainties of 2025 on a single budget.

The average cost of buying a home has continued to rise, with the latest data from the Australian Bureau of Statistics putting the national average at over $985,000.

On top of that, Australians now need to save nearly double the deposit to buy their first home compared to just 12 years ago and, based on recent data from an ANZ & CoreLogic 2024 report, an average mortgage is likely to require 50% of a borrower’s monthly income.

If you consider that while incomes have risen 42% since 2012, the average property price in Australia has risen by an astonishing 99%, it’s not surprising that it’s difficult for single property buyers to enter the market.

Take a look at the average numbers home buyers are staring at across Australia:

So it’s quite obvious that a dual income household is much better positioned to meet the demands of such a financial commitment.

There are, however, resources and strategies that can support solo buyers looking to navigate the current market.

The Financial Realities of Buying Solo

Without a partner to split the bills or share the burden of a mortgage, single homebuyers will need to shoulder 100% of the costs involved in both securing and maintaining a property. Here are the most common costs you’ll face:

Saving for the deposit: Lenders typically require at least a 10-20% deposit on the value of the property. For single buyers, saving that deposit can take longer without dual incomes. For example, if you’re eyeing a $600,000 property, you’ll need $60,000–$120,000 upfront.

Securing financing: Your borrowing capacity is based solely on your income and savings. Unlike couples who combine incomes, single buyers can sometimes find their purchasing power more limited when seeking home loans.

Loan repayments: You’ll be covering your mortgage repayments all on your own. These will likely range from 30 – 50 % of your pre-tax income which, depending on your monthly income and existing expenses, can be a significant financial load to bear.

Upfront costs: This includes fees like stamp duty which can range into the tens of thousands depending on the price of your home and whether you’re eligible for government exemptions or grants. Inspection, registration, as well as conveyancing fees and LMI, can all add up to require a significant initial output.

Ongoing bills and unexpected costs: Council rates, water bills, home insurance, and utility costs—these are non-negotiable and can stack up quickly. Maintenance and repairs can catch you off guard too. That burst pipe or faulty roof? You won’t have a roommate or spouse to split the costs.

Strategies for the Solo Home Buyer

Owning your dream home as a single buyer is absolutely achievable. But with the costs in mind, it’s clear it’s going to take careful planning, budgeting, and some know-how:

1.  Get Pre-Approval: Before falling in love with a property above your means, seek pre-approval from a lender to understand your borrowing power, giving you a realistic scope as you house-hunt and increasing your chances of securing a loan by up to 80%.

2. Sort your Finances: Before you begin house-hunting, sit down and calculate your budget, including all potential expenses like mortgage repayments, stamp duty, and maintenance.Calculate what you can comfortably afford while factoring in your existing lifestyle expenses, by using our borrowing calculator.

Set up a dedicated savings account for your deposit, automating your savings to grow it faster, and take advantage of high-interest savings accounts. If your income feels stretched, see if you can add a side hustle, freelance work, or take on additional hours at your current job. Every bit helps when building or maintaining your financial buffer.

3. Reduce Debt: Pay off as much debt as possible before applying for a home loan. Lenders look at your debt-to-income ratio when deciding how much to lend you, so the less debt you carry, the more favourable your borrowing capacity will be. This includes credit card limits and Buy Now Pay Later services – if you have access to it, it’s going to drastically reduce your borrowing power whether you’ve used it, repaid it or never touched it.

4. Research Grants and Exemptions: Check if you’re eligible for first-home buyer grants or stamp duty concessions in your state. There’s a range of options out there and these initiatives can save you thousands of dollars.

5. Have a property plan: Consider starting with a smaller property that fits within your budget and moving up the property ladder over time. Apartments or townhouses are often more affordable than standalone homes and may come with lower maintenance costs. Or you may consider a rentvesting strategy, enabling you to purchase a property to rent out, rather than live in from the start.

6. Consider co-borrowing; Owning solo doesn’t mean you’re alone. Many single investors pursue some form of guarantor loan with family or friends to make home ownership a possibility.

7. Emergency Fund: Set aside an emergency fund for unexpected repairs or large bills. Ideally, this should cover at least 3-6 months of your living expenses and property-related costs.

Buying solo – it can be done!

Purchasing a home alone can be immensely rewarding. With a bit of preparation, you can overcome any hurdles. And remember, the property market can be confusing and overwhelming, but you don’t have to do it alone. Start your journey with confidence by exploring more expert tips and advice designed for single buyers.