How a 21-year-old university student could make a down payment on an apartment in Melbourne while working as a BARISTA – and his risky savings tips
- Adam Feng, 21, bought a luxury apartment while working as a cafe barista
- He worked 56 hours a week to pay for the $510k single bed from the Sky Garden complex
- In six months, he saved $50,000 by working as a barista for just $18 an hour
- Feng balanced his cafe job while studying at RMIT University in Melbourne
A college student who worked as a barista between classes for just $18 an hour was able to save a $50,000 home deposit in six months by investing in the stock market and getting a second job.
Adam Feng, 21, who is only in his sophomore year at RMIT University, bought the luxury apartment of the Sky Garden complex in Melbourne’s Glen Waverley in May.
Tired of living at home with his parents, the student scored a $510,000 one-bedroom flat at the height of the Covid pandemic by taking extra hours at his casual job as a barista for just $18 an hour .
Feng also got a second job paying $21 an hour and was able to work 56 hours a week when his classes shifted online due to the threat of the virus.
“I had no social life,” Mr. Feng . told news.com.au. “But I saved $50,000 in six months.”
Adam Feng, 21, bought his first apartment while in his sophomore year at RMIT University Melbourne so he could move in with his girlfriend (pictured)
The ambitious student also invested some of his savings in the stock market during the early stages of the pandemic.
Mr Feng said a fifth of his deposit came from investing his weekly savings in the market, benefiting from plummeting stock prices.
The 21-year-old has also saved every penny since getting his first part-time job at his parents’ bakery when he was just 14 years old, rather than spending his earnings going out with friends or going on trips.
“I had nowhere to spend money, so I just kept it,” he said. “I didn’t like going out with my friends.”
Even with his great savings habits, Mr. Feng was unable to save the entire $102,000 down payment and got a helping hand from his parents.
The student saved $50,000 in just six months to buy the one-bedroom apartment in the Sky Garden complex in Glen Waverley (pictured)
He has since paid back his parents in full, but had to rely on them to pay off his mortgage after Melbourne shut down for the sixth time, leaving his job in limbo.
One in three young Australians rely on Mom and Dad’s couch to get into the competitive housing market.
A finder’s survey of 1,028 real estate newcomers found that younger Australians are turning to their parents, with 32 percent of first-time homebuyers relying on them to either fund a mortgage deposit, take out a loan or cover the full purchase price.
Finder calculated that an equivalent of 3,779 Australian adults depended on their parents to pay for a house each month.
Nearly a quarter or 23 percent of respondents relied on their parents to fund either a mortgage deposit or loan repayment.
A smaller proportion, 12 percent, relied on their parents to cover the full purchase price.
He took ownership of $510,000 by investing in the stock market while balancing college and work
Despite saving $50,000 for a down payment, his parents had to put in the rest for a home loan from the bank.