Saving the deposit for your first home can seem like a daunting task, but it doesn’t have to be that way. Start putting these four tips into action and you’ll find yourself in a position to hand over a deposit sooner than you think.
1. Be realistic about where you’re going to start
Before you even get to the point of looking at properties to buy, it’s wise to sense check the price brackets you’re looking at.
Wendy Brown, Head of Broker Home Loans at Macquarie’s Banking and Financial Services Group, says you don’t have to have it all, straight away.
“It’s smart to think long and hard about where you’re happy to start, rather than where you want to end up,” says Brown.
“A lot of people want to purchase a property similar to the one they grew up in,” she says.
“But you shouldn’t feel like you have to buy your ‘forever’ home straight away.”
2. Develop good saving habits early on
There are many things that can help first-home buyers save for a deposit (20% of the purchase price if you want to avoid paying Lenders Mortgage Insurance), and no doubt you’re already doing many of them:
- Have a separate, high-interest account to put savings into, and set up regular automated payments.
- Pay off credit cards, loans and hire purchase agreements.
- Create a savings plan.
- Use a budget planner and track all of your purchases to identify where you’re overspending.