Saving for a house deposit can seem like a daunting prospect and achieving your desired amount can seem like it will take forever! If you’re itching to build your first home, but are at a standstill with your savings, here are some of our top tips to help you get there sooner:
1. Make a budget and stick to it!
A lot of us are guilty of not putting a budget in place, regardless of whether we’re saving or not. Its hard to tell where your money is going if you dont account for it.
A budget should take into account the money that you have coming in every month, and the bills and expenses you pay for each month. Once you know how much money you should realistically have left over at the end of each month, you can set yourself a savings goal!
2. Cut unnecessary costs
Now that you’ve got your budget in place, look at where your money is going. Are you spending $80 a week on takeaway lunches when you could cut that back to $20 by packing your lunch every day? Cutting those figures back, you would save $60 a week, $240 a month, which is $2,880 a year! Adds up doesnt it? Really look at where you’re expenses are overkill and cut back. Even if its just for a few months, you’ll be surprised how much you could save!
3. Do the unthinkable
Move back in with your parents. Yes, I know, the thought seems unbearable but if they are willing to let you live with them rent free, or with paying little rent, that’s a HUGE chunk of money that you can put towards your deposit. Plus think of the advantages: splitting bills further, home cooked meals and possibly even getting your laundry done again!
4. Ask for help
If you absolutely cant bear the thought of moving back in with your parents (or maybe they cant bear the thought of you moving back in), ask if they’d be willing to help. In some scenarios, your parents may be able to go as guarantors on your loan. This means that they can offer their home, or another property they own, as security for your mortgage. The bank only needs to secure the required deposit amount against their property and, once that portion of the loan is paid off, your parents are released from the loan. ***
5. Utilise your First Home Owners Grant
The FHOG is a good chunk of money ($20,000 in QLD) and lenders will often consider this as a part of your savings and deposit. This grant is a huge boost to getting you into your new home sooner and is definitely something that should be taken advantage of while the government has it on offer! ***
So there you have it; 5 ways to get into your first home sooner. These area just a few ways of saving that deposit to build your first home, but I’m wondering if you have any more? If you’re a savvy saver, I’d love to hear your ideas. Leave them in the comments below!
***This is general information, Stirling Homes QLD are not mortgage brokers or financial planners. To find out more about Guarantors and the First Home Owners Grant as a part of your finance, please speak to your bank or broker***