Ahhh, how to save for a house deposit! It can send shudders down your spine thinking about it. Imagine this… You’re sitting in your living room with a hot coffee in hand. The morning sun is glinting through the window. Outside you can see the jacaranda tree you planted, standing tall in the front garden. Peaceful right? Joy in its purest form: your own house, your own garden, your own piece of land. You worked so hard to save for that deposit and now, you can finally enjoy it. You’ve earned it.
When you boil it down, the recipe for your dream house is actually pretty simple. A touch of research, stir in some expert advice and add the (not so) secret ingredient… a deposit. The intel-gathering phase is critical for your savings roadmap – setting up your deposit target is a must. But once you have that magic number, you can get your savings show on the road and start building up your deposit.
Ways you can save for a House Deposit:
(i)Put it in the Bank!
Here’s the scoop – your bank statements say a lot about you. They’re an all-access, backstage pass to your finances; what you spend your money on and whether you pay your bills on time. Now this might be fairly useful information for you, but it’s SUPER important to the bank where you’re applying for a loan. Apart from just being a straightforward way to save, a bank account consistently recording you setting money aside makes for an excellent first impression when you sit down with the bank. A great savings record gives them proof that you’ll be on top of your loan repayments and shows just how much you want to get that house.
One option is to transfer a fixed amount each week or month to a sub-account and gradually save up your deposit. But to avoid the temptation of skipping a week, we’ve got a plan to put your savings on autopilot.
Step 1: Open a new high-interest savings account with rock-bottom fees. You can compare the best ones here at Canstar.
Step 2: Set up a transfer that comes straight out of your earnings automatically every time you get paid.
With this method, you’ll never skip a week accidentally (or on purpose!), when it comes to your deposit again. You’ll hit your target in no time, and the best part? You won’t even think about it.
We’re not done yet though. Next are even more options to compliment your amazing savings.
(ii)Benefit from schemes
In essence, these pressure-relieving schemes help shorten the distance between your dreams and reality. Nowadays, you can explore and choose from a huge range of options. Check out the First Home Loan Deposit Scheme and First Home Super Saver scheme to see why just 5 minutes of research could save you a whole bundle on your deposit.
(iii)Multiply with Investments:
This option might not be for you, but if your deposit is still 3 or 5 years away, investing is a great option to explore. Investments are a great way to multiply your money and they can generate some really meaningful returns on your hard-earned cash. Just remember though: it’s always best to be careful in uncharted waters. The risks when you dive in without doing proper research could spell disaster for your deposit. So, if you’re new to the investment game, it’s always best to get some professional advice.
(iv)Get more value for money:
Before we go any further, there’s something we need to clarify: being cheap and savvy spending are two completely separate things. The difference is simple though – planning. Take a few minutes to make two identical shopping lists. On the first one, cross out all your favourite treats to save money. No good coffee? No chocolate? NO TIM TAMS!!!! No thank you.
On list number two, find out if anything on your list is on sale. Weekly special? Half price? Two for one? Thanks for coming. These quick and clever budgeting hacks will not only ensure you get your money’s worth, but make sure you’re not giving up the things you love to hit your deposit goals.
(v)Help of professionals:
To fast-track your deposit, a hand from an experienced advisor is the way to go. Whether they’re mortgage brokers or an adviser who specialises in real estate, the guidance they provide is your deposit’s secret to success. Professionals add a level of personalisation to the whole process. They help you better understand each step of the way and jump safely over your savings hurdles. The best time to reach out to these professionals is when you have saved up roughly half of your deposit.
It’s such a great feeling to watch your savings grow and using these tricks will get you to your deposit target in no time. As Mark Twain said, “the secret of getting ahead is getting started.” So what are you waiting for? Open that account, grab the supermarket catalogue and start your savvy saving! I hear Tim Tams are half price this week :)
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