Saving to Buy Your First Home
Buying a house isn’t like ordering a new pair of headphones online; this lifelong investment will often be the largest investment that you ever make.
Although banks in Australia are more than happy to lend to reliable borrowers; you will still need to tick a few boxes before your application is even considered.
One of these boxes just so happens to be your deposit and when you’re saving to buy your first home, you might be struggling to put enough aside each month to secure your home loan.
How can you save more?
It’s actually much easier than you might have imagined. For a start, there are plenty of options available to first time buyers that can help them to keep on top of their expenses, without reducing their quality of life.
Don’t aim so high
Plenty of people walk into the property buying process with high hopes – hopes that are often way beyond their means.
These days, home prices are skyrocketing and so getting on to the ladder should be your priority. You shouldn’t need to settle for a wreck, but somewhere that’s comfortable and within your budget can be a great start.
If you don’t keep track of what you spend, you could end up over-doing it and minimising your saving potential. Rather than spending excessively each month, why not see if you can cut back on a few things?
Gym memberships can be expenses, as can subscriptions that you don’t actually need right now. Once you buy a home you’ll no longer be in need of the extra cash, so you’ll be back to normal in next to on time.
Take advantage of different savings accounts
Most savings accounts will offer interest – but there are some that yield higher percentages than others.
If you know that you want to buy a home in three years, then why not put a certain amount of cash into a high-interest ISA and let the money accrue for the next few years?
Before you know it you’ll have saved up a few extra hundred dollars - or even a couple of thousand, depending on how much you put into the account, or how high the rate of interest is.