Last week we talked about buying a first home. It’s not as difficult as it seems. Many people can do it if they ignore the negative opinions and commit to the task.

Many young prospective first home buyers want a grand home with every possible feature from the outset. That will be very costly, requiring a huge loan that will take forever to repay.

It’s best not to seek a mansion that can’t be improved. It’s better to look for a more modest but well-located property, that can be improved so the value increases. The owners’ equity in the property will grow faster.

The First Home Guarantee Scheme allows borrowers to purchase a home with just five per cent deposit without paying mortgage insurance. It can do this because the Australian Government guarantees repayment of fifteen per cent of the loan if the borrowers default and the home is repossessed.

Some non-first home buyers have access to similar schemes. The Family Home Guarantee Scheme allows single parents with minor children, who have owned a home before, to buy a home with as little as two per cent deposit.

A regional version of the First Home Guarantee Scheme ensures extra places are available for people in country areas. Those who have owned a property previously, but not in the last ten years, are also eligible for the Regional Home Guarantee Scheme.

These schemes are allowing many more people with limited deposits to buy their first or subsequent homes. Interested people should research how they work and contact their bank or mortgage broker. Then it’s a matter of taking a positive view, committing, and making it work.

Once in the new home the discipline used to save the deposit should continue – spend less than is earned. Pay a little more than necessary off the mortgage at every payment. This reduces the debt more quickly as the value of the home increases, thereby building equity in it faster.

Once equity in the home has increased to a sound level, take on some extra risk. Borrow against it to buy investments – managed funds, some shares or another property. With managed funds the loan can start smaller and the plan is more flexible than for a second property. That can happen later.

There are many strategies to get ahead. It’s always important to keep learning and look for promotion opportunities and pay rises.

Consider self-employment and business opportunities. Look at buying land, a commercial property or a small farm. Continue to borrow to fund purchases but do it carefully, when reliable income is available to service the debt. A positive attitude and determination will bring success.