We all know property prices are a lot higher than when our parents bought the family home. Still, there’s plenty of opportunities to get your foot in the real estate door. The hardest part for most is saving the dreaded home deposit. It can be a hard a long journey to get the desired amount but we guarantee the feeling of accomplishment when you get there is worth the hard yards. We’ve collected a bunch of handy hints and tips to get you on your way!
1. Set up a saving account
It’s easy to track your savings with a separate savings account. It’s even easier if you can open up one with a different bank to your normal banking. This makes it harder and longer to access money. So you will really need to toss up if those new heels you’re looking at is worth the 2 business days to clear.
2. Save at least 10% of your paycheck each pay
You might have heard this one from your parents a million times but it does work. Easiest way to work this is to transfer the amount to a savings account. Why not round up the amount to save even more?!
3. Transfer excess funds
Is it your next payday already and still have money in the bank? Transfer it to your savings account! You would be amazed how much the extra amount adds up to.
4. Pay off your debt
This is a tricky one as you want to save but then you also have debt hanging off your shoulders. Paying back debt before saving has its clear advantages. Firstly it will free up money to put towards your savings. Paying off debt means saving on interest and other charges associated with debt. Also serviceability wise, it may mean you may be able to borrow more for a home loan.
5. Cut the caviar
Have a look at your spending habits. Are you buying coffee on the way to work or buying your lunch every day? Stop it! The average cup of coffee is $4.50 and on average a lunch in the CBD area is $14.50. If you’re buying both every day, you’re throwing away $95.00 per week!
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