I have a bad credit history but would ultimately like to buy a property. How should I go about this?

Q.

I have recently received a 'windfall' of $30,000, however I'm not very good with money and would like some advice on what to do with it. I am 25 years of age and currently renting with my partner. I have no debts and earn $53k per annum. I was on the bad credit register for five years due to an unpaid mobile phone bill from when I was 18. Due to this I have no debts, but I also have no credit history so banks are not too keen on lending me money, therefore buying a house seems out of the question at the moment. I'm in two minds as to what to do with this money. I'd like to save it for a house deposit, but I don't want it just sitting in my account (4.75% savings account with ING) if I could be investing smarter and obviously getting a higher return in another venture and if/when I am ready to buy a house I could potentially have a larger deposit. What do you suggest?

Your first goal should be to establish a good credit rating with a bank. You can do this by depositing the money into a high interest bank account, making regular payments to it and getting to know the local bank manager. Then when the time is right you will be in a position to apply for a housing loan.