A new wedding trend is emerging as couples are increasingly asking their guests to help contribute to their home deposit instead of traditional gifts.
According to realestate.com.au, with property prices skyrocketing, newlyweds are using their special day to kickstart their journey to homeownership.
It’s a trend that is already playing out in the United States, where 87 per cent of couples plan to include cash funds on their wedding registries, according to a survey by online registry company Zola.
Buyers Agent, Cate Bakos, said given the state of the housing market, it was actually a smart thing to do for couples.
“When you attend a wedding as a guest there’s an unwritten expectation that you either give the couple a gift or you give them money or you subscribe to the registry and give them what they’ve asked for,” Ms Bakos said.
However, the reality of high property prices presents a significant challenge.
Even with wedding contributions from guests, many couples may still struggle to get together a sufficient deposit.
Mozo.com.au analysis reveals that deposit needed for a home ranges from $104,340 in the Northern Territory to $233,500 in New South Wales.
In Australia, with the average full-time adult weekly wage at $1,923, homeownership remains a distant dream for many.
Victorians need a deposit of $180,960 for an average house worth $904,800, while Queensland requires $156,320 for a typical $781,600 property.
Ms Bakos said that couples should consider scaling back on wedding expenses to prioritise saving for a home.
“I think guests would probably feel really pleased about the money going towards something so substantial,” she said.
She said putting the money towards a house is better than receiving other household items.
“Unless they were looking at a very low priced unit or something in the country in the regions $20,000 probably wouldn’t quite get them into the property but it would certainly give them a red-hot start – the hurdle that they’ve got with the lender is if that’s all of the deposit they have or the majority of it,” she said.
“Genuine savings will need to remain in their account for a certain number of months – usually it’s three months sometimes it’s six months depending on the lending policy.
“Most couples getting married in Australia now have lived together anyway so they probably don’t need toasters and cutlery and linen – they’ve probably already got it.”
