Saving up for a deposit on a new home can seem like an impossible task, especially while renting. But, with a little focus and a financial plan, homeownership is not as out of reach as you might think.
Guest post by Start Point Homes
The journey to owning your own home doesn’t have to be hard and challenging. Here are some easy steps that can help you save your hard-earned money, re-evaluate your spending habits and get you into your new home faster:
Limit unnecessary expenses
Buying a coffee every day on your way to work and eating out for lunch can add up financially. Try to change these spending habits and make your coffee at home and bring your homemade lunch to work.
Have a look through your bank accounts and track your spending. Cancelling unused monthly memberships and cutting down on your utility bills by turning lights off when you leave a room and reducing your shower time are also clever ways to minimise costs.
Set a goal and create a budget
Home loan deposits are typically 20% of the value of the property you are looking to buy, so it is a great idea (and a lot of fun) to start by researching the price of houses in the areas you would like to live.
Once you have an idea of how much you need to save, we suggest you create a detailed list of your income and expenses each month (rent, groceries, bills, transport), making sure you include unexpected expenses such as vet bills or car repairs. Once you have mapped out your finances, it’s easier to see where money can be saved.
Don’t be afraid to ask for help
Buying a house is one of the biggest purchases you will make in your life so don’t think twice about seeking professional advice. Speaking to financial professionals and new home specialists can help you understand home loans, Government grants, credit scores and help you create a complete savings plan.
Set up a dedicated savings account
Create a ‘Home Loan Deposit’ account and allocate money into it every pay cycle to help track your progress.
Setting up direct debits into this account is also a good way to manage your funds and avoid the temptation to spend money unnecessarily.
Take advantage of first home buyers grants
There are many government assistance loans to help eligible first home buyers into their home.
With options such as the First Home Loan Deposit Scheme, HomeBuilder and First Home Super Saver Scheme, now is the best time to build your first home and start your journey to home ownership.
In the beginning, it may seem like you’re saving very little but after some time and financial discipline, you will notice your efforts adding up. Every bit of savings counts and applying for government concessions can help you reach your financial goal faster and move into your own home in no time.