5 STEPS TO SAVING FOR A HOUSE DEPOSIT
- Posted By Prince Lakshman
Some of us only dream of owning a home in Australia. These days, it seems that it’s nearly impossible to afford one given the current condition of the market. But did you know, that no matter where you are in the country, it is still possible to own the house of your dreams?
Yes, it isn’t really impossible!
You can turn the great Australian dream into a reality by following these five steps.
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ANALYSE YOUR CURRENT EXPENSES
First, you’ll want to track your current financial situation and spending habits. Gather as much information as you can on what you’re currently spending. Group your spending into different categories so it’s easier to see where your money is going.
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HAVE A BUDGET IN MIND
Start with a solid budget and stick to it. Once you have an idea of how much you’re spending, try to find areas where you can cut back. Small changes to your usual spending habits can make a bigger difference than others. You can cut your daily Starbucks run for starters, or you can move back home temporarily until you can save enough for a deposit. It will make a great impact to your bottom line.
Decide on how much you can start saving. Ideally, you’ll want to save as much as possible, but you also have to make sure your budget is achievable.
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PAY YOUR DEBTS
It’s a sure struggle to think about long-term saving if you still have debts to take care of. Debt consolidation can help reduce the stress of multiple debts and interest rates. It’s a smart method if you want out of multiple payments and interest rates. The fewer debts you have, the more likely the bank will look favourably on you when it comes to deciding your home loan application.
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START SAVING
As stated, you’ll want to save as much as you can for a home deposit. This will mean you don’t have to borrow much from the bank and you’ll pay less in interest. If you are only able to save a smaller amount, your lender or bank may charge you Lender’s Mortgage Insurance or a Low Deposit Premium in order to protect themselves.
You also have to remember that there are some other upfront costs of buying a home outside of the deposit that you’ll need to be able to cover.
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ASK FOR HELP
If circumstances don’t make it possible for you to save that much for a prospective property of your dreams in Melbourne, there are other ways you can reach your deposit saving goal sooner.
In Victoria, the First Home Owner Grant is a state government scheme in which eligible home buyers can receive a one-off grant.
Other help may come from either your parents or other family members who may be willing and able to hand you out with a financial gift or interest-free loan.
With decades of experience, we are the property experts that you can trust. We adopt 100% principal and director involvement in all properties to ensure that we take the hassle and stress out of you.
Let NDL REALTY help you realise the great Australian Dream!