The first step towards achieving your goal of owning a home is to save for it as quickly as you can. You’ll need to commit to saving for a home deposit, which means making decisions as to where you’ll be spending your money. Do you concentrate on saving or splash out on a night with friends?
Every dollar saved will move you just that little bit closer to the Australian dream of home ownership.
In Australia, first homeowners can also take advantage of various grants from the government, at both the State and Federal level to help them get started in owning a property. Make sure you check out what you are entitled to within the state that you live. The Victorian Government has just proposed the scrapping of stamp duty for first home buyers in Victoria. Read more about that here.
On average, you’ll need at least a 10% deposit to put towards buying a home. Depending on your own personal circumstances and the lending criteria demanded by your bank, you may have to contribute as much as 20%.
Banks may consider other sources of funds that you can contribute to your deposit, such as a family pledge or guarantee. If you need a hand regarding your finance, drop us a line. We can recommend to you qualified, reliable people that will be able to help you with a solution tailored to your own personal circumstances
Here are simple ways you can follow to help you save and set you on the path to buying your own home.
Develop a Savings Plan
Making a savings plan is a vital step towards attaining your goal of home ownership.
As you’re saving, decide on the type of property that you’d like to buy and set a benchmark as to what you can realistically afford. It’s fine to dream big but only if you have sufficient funds. If you’re just starting out, be realistic and aim for a property that is within your budget. This may not be your forever home, but it will at least get you into the property market.
As part of your savings plan, you can set aside a certain portion of your monthly pay, for example, 10 percent, and put this towards saving for your home deposit. Doing so will require discipline and may mean meals out at expensive restaurants, extravagant holidays or other luxuries you’ve grown to enjoy may need to be curtailed in the short term.
However, when you’re in your home it will be worth any sacrifices you need to make today to save up the necessary deposit.
Sell Unused and Unwanted Stuff
If you have personal items hanging around the home, such as household items that have remained unused or are no longer of use, it’s time to declutter!
Gather anything that you’ve not used for the past 12 months and sell the items – either online or offline.
Walk from room to room and see what you can rehome. Aussies love a bargain and holding a garage sale is the perfect way to clear out your home. Many groups on Facebook also offer the ability to Buy, Sell or Swap in your local area. Join a group, take photos and list your items for sale, offering other group members the option to come and collect the items from your home.
Online, you can you sell unwanted items on eBay or Gumtree.
Any sales you make will be welcome cash in your pocket, that can quickly equal additional savings you can put towards your home deposit.
Pay Off Your Debt
Find ways to pay off any outstanding your debts to save on paying interest. Not only does this help with your serviceability for any home loan, you’ll also free up your cash to use towards paying your mortgage.
Set a budget and work on paying off debts from the smallest to the largest so you can eventually eliminate any credit card debt and personal loans.
Get a Part-Time Job
Another way to increase your savings is to get a part-time job. If you have an office job during the day, consider applying for other work that will allow you to work at home during the night. It could involve anything that you are skilled at, such as writing articles, tutoring students, doing graphic design or teaching English to foreigners.
As you can see, there are lots of different ways to help save for your home deposit. What’s important is you set a budget and start saving now. That way you can look forward to buying your dream home sooner.
The information on this website is educational in nature. The information is offered with the understanding that the author and publisher are not engaged in rendering medical, psychological and or financial services. The information is not intended to be a substitute for professional advice nor a substitute for legal, business, financial or tax advice. This information is general advice, as each person’s
situation is different and you should consult your advisor before taking any action. The reader assumes full responsibility if using any of the information. The authors and Amalain Pty Ltd specifically disclaim any liability resulting from the use or application of this information and the reader is advised to consult their financial advisor or broker before taking any action. Before using this website and reading the content you should read our website terms and conditions.