A new wedding trend is emerging as more couples are asking guests to contribute towards a home deposit in lieu of traditional gifts.
With property prices soaring, newlyweds are using their special day to jumpstart their journey into homeownership, according to realestate.com.au.
It’s a trend already taking hold in the United States, where 87% of couples plan to list cash funds on their wedding registry, according to a study by online registration firm Zola.
Buyer’s agent Kate Bakos said this was actually a smart move for the couple considering the state of the housing market.
“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.
However, the reality of soaring real estate prices poses a major challenge.
Even with wedding donations from guests, many couples may struggle to raise a sufficient down payment.
Mozo.com.au analysis reveals the down payment required to buy a home ranges from $104,340 in the Northern Territory to $233,500 in New South Wales.
With the average weekly wage for a full-time adult in Australia being $1,923, home ownership remains a distant dream for many.
In Victoria, the average home worth $904,800 requires a down payment of $180,960, while in Queensland, a typical property valued at $781,600 requires $156,320.
Bakos said couples should consider cutting back on wedding expenses in order to prioritize saving for housing.
“I think the guests will probably be really happy that their money is being spent on something so fulfilling,” she said.
She said it’s better to spend money on a house than to receive other household items.
“$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. “That’s the hurdle they have.” The lender determines whether that’s all of their deposit or a large portion of it.” she stated.
“Genuine savings must be kept 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 a toaster, cutlery or linen. They probably already have them.”
