can be challenging to stay motivated if you’re saving for an indefinite
amount, so it’s critical to define your house deposit savings goal as
soon as you can. Start by writing down your key figures: income,
savings, spending. Then dare to dream! Within reason.
Pick out locations you like, perhaps those that are gaining popularity with first home buyers, and
make a note of median house prices. There are plenty of mortgage
calculators around, which will tell you how much money you will need to
save to place a deposit on a property based on the purchase price. They
let you play around with loan to value ratio and give you an idea of
what your loan repayments will be, based on how much you pay upfront.
this should give you an accurate ballpark figure, which you can then
divide into a per year, month or even per week savings amount.
Look to your own backyard
save effectively, it’s worth looking at your most significant money
drain first: your current rent. Many prospective Aussie first home
buyers move in with their parents or downscale their rental
accommodation to save money. If these aren’t options for you, there are
other ways to minimise your accommodation costs.
One option could be to get some flatmates, and another would be to
move into a more affordable suburb while you save. It may not be your
ideal scenario, but cutting rent and bills is one of the quickest ways
to increase your savings. Short term pain equals long term gain.
The same goes for your car
it’s the weekly fuel up, monthly car insurance, quarterly servicing, or
yearly registration, maintaining a car in Australia isn’t cheap. If you
have access to public transport, you might consider selling your car
altogether, or just downgrading and cashing in on your current ride
while it’s still worth something. For extra $$$, make sure you shop
around for the best deal on your insurance policy and remember to
revisit it each year.