Are you wondering how you’ll be able to scrape together a deposit for your first home? What with rent, bills, other expenses and any debts you’ve accumulated, it can be hard to imagine ever getting together the amount needed to secure your first property.
However, if you start implementing some simple saving strategies, you’ll be able to get your foot on the property ladder sooner than you think.
1. Cut down on spending habits
This is an obvious one! When you’re saving for something big, you need to prioritise what you really need to spend your money on. So it might be time to cut down the number of times you eat dinner out, limit those online shopping sprees or swap that expensive gym membership for jogs outside.
2. Put aside a set amount towards your mortgage each pay day
It’ll be much easier to get that deposit together if you have a smart savings strategy in place, and a vital part of that is sticking to a budget. Careful budgeting will help you figure out where your money is going and stick to a limit, as well as ensuring that you consistently continue to grow the funds for your deposit.
Set up automatic transfers into a high-interest savings account each pay day so that the funds for your deposit keep growing (and you won’t be tempted to touch them!)
Moving back in with your parents might not be your most desired option – but it could help you save for your own home much faster! Moving back in with your parents might not be your most desired option – but it could help you save for your own home much faster!
3. Move back in with the rents
This may not always be a viable (or particularly exciting) option, but it could help you save a tonne! The median weekly rent in Australia is $335, ABS stats show $17,420 over the course of a year! That’s a significant amount of money that you could put towards a deposit.
If moving back home is an option, talk to mum and dad about it. They might want you to pay a little board and help out with household chores, but the amount you can save could be worth it.
4. Use your super funds
The First Home Super Saver Scheme lets you make voluntary contributions of up to $15,000 a year and a total of $30,000 into your superannuation to purchase your first home. The concessional tax treatment and the fact that superannuation often experiences a higher rate of earnings could potentially boost your savings by 30 per cent, according to government estimates.
5. Take advantage of the First Home Owner Grant
Under the First Home Owner Grant, first home buyers can access government funding to assist with the purchase of their first property. The amount of funding available differs between states, but if you’re eligible to receive the Grant, you could get a boost of thousands to help you out.
Want to get free wealth tips or advice, contact us at (03) 9810 3666
Guest post by Joshua Almond from Smartline Personal Mortgage Advisers.
Joshua Almond brings extensive residential and commercial banking experience, as well as a commitment to outstanding service and communication to his role as your Smartline Adviser.