Australian couples are likely to exchange their toaster, kettle and linen for a contribution towards a housing deposit.
A growing number of Australian couples could be quick to jump on a new wedding trend that’s taking hold in the US.
In a bold twist on wedding tradition, many couples are asking guests for a home deposit in lieu of household goods.
With property prices relentlessly rising across Australia and many young couples being squeezed out of the housing market, it could soon become commonplace for housing funds to be listed on the marriage register.
A survey by online wedding registry company Zola found that an overwhelming 87% of couples plan to include cash funding as an option.
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This trend represents a departure from newlyweds stocking up on kitchen supplies and starting their lives with their biggest asset: real estate.
Kate Bakos, a prominent buyer’s advocate, said couples who ask for a contribution toward a home down payment have a financial responsibility.
“When you attend a wedding as a guest, you are exposed to an implicit expectation that you will either give the couple a gift, give them money, or register them and give them what they asked for.” Bakos said.
Kate Bakos, a prominent buyer’s advocate, said she supports couples contributing their marriage registry to their home down payment and believes this is “financially responsible.”
“It’s becoming a trend for guests to choose their own gifts, give them toasters and kettles. Almost every wedding I’ve been to over the past 15 years has had a wishing well.
“If (money) is spent on a toaster or kettle, it’s a depreciating asset; if it’s spent on a house, it’s an asset that increases in value; and if money is spent on a holiday, it’s a disappearing asset. Guests probably don’t really care that their money is being spent. I think you’ll be satisfied.” Toward something very essential. ”
When American couple Gigi Blanco and EJ Kelly got married in 2022, they registered their home loan and received $20,000, Blanco, 32, told The New York Times.
Gigi Blanco and EJ Kelly got married in 2022 and registered a housing fund in the registry. Photo: Instagram
That money helped them buy a three-bedroom farmhouse-style home in Bedford Hills, New York.
Mr Kelly, 37, who works in property marketing and brand strategy, said they were able to build the house “without liquidating ourselves”.
After a bidding war and other negotiations, they sold the $689,000 home for $725,000, becoming first-time home buyers.
However, collecting a housing deposit for an Australian wedding may not be as easy as you think. Even if 100 wedding guests each donated $200, or $20,000, Bakos said, the couple still wouldn’t be able to cross the line.
Bakos suggests couples consider a less lavish wedding and save everything they can.
“$20,000 probably won’t get them into that property unless they’re looking at a very low-priced unit or something in a rural area, but it’s definitely a red flag for them. “The hurdle they have is whether that’s all or the majority of the deposits they have,” she said. Said.
“Genuine savings must remain in the account for a certain number of months, usually three months but sometimes six months depending on the lending policy.”
“Most couples who get married in Australia are living together anyway, so they probably don’t need things like toasters, cutlery and linen. They probably already have them.”
Buy-side advocates also say that because wedding costs are soaring, couples are not having very lavish weddings and are choosing as much as they can “to collect towards the house rather than a really expensive lavish wedding.” He suggested that it could also save you money.
With the average weekly wage for full-time adults standing at $1,923, homeownership remains out of reach for many Australians.
Mozo.com.au analysis shows buyers will need at least $104,340 as a deposit in the Northern Territory and a staggering $233,500 in New South Wales, reflecting the wide disparity between regions.
Victoria is not far behind, with the average $904,800 home requiring a hefty down payment of $180,960.
In Queensland, you need $156,320 to buy a typical home worth $781,600.
In South Australia, demand for a down payment has soared to $136,940 for a property valued at $684,700, while in Western Australia, a home valued at $671,000 requires $134,200. Tasmanians are also shelling out big bucks, paying $132,440 for a home priced at $662,200.
New South Wales is Australia’s most difficult state to save money to buy a home, requiring a whopping $233,500 to avoid mortgage insurance.
According to ABS statistics, the average weekly wage for a full-time adult in Australia is $1,923, which translates into a net monthly salary of $6,432.
Whether opting for a simpler wedding or redefining the registry, modern Australian couples are rewriting their path to homeownership and couples are finding ways to help couples face the tough challenges of real estate. It’s clear that you’re trying to turn a collection of people into a smart real estate investment.
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