Can We Buy a Million-Dollar First Home?

Hi Barefoot,

My husband and I have a goal of buying a house in four or five years. Our goal is to have a 20 per cent deposit for a $1 million dollar house. Big goal, but even if we miss the mark we will still have a good deposit. My question is: Is it possible to save this amount of money while living by your 60-20-20 rule? Basic maths says no. We earn $128,000 before tax between us and presume this will go up soon. We also wish to start a family in a year or so. Are we being ridiculous?

Naomi and Ben

Hi Guys,

Yes, you are being ridiculous.However, you’re in good company. I meet a lot of newly married couples that want to do in 5 years, what took their parents 25 years.

So let’s have an adult conversation: you can’t afford to buy a million dollar home because you’re earning $128,000 a year, and because you’re about to start a family. You simply aren’t earning enough. Besides, your goal shouldn’t be to buy a million dollar home -- it should be to own your own modest family home outright in fifteen years. That’s probably how your family did it.

Scott