Saving up for a home deposit: Tips to help get you there faster
Saving up a deposit to buy property is always a difficult thing to do. After all, a deposit is no small feat to achieve. While there are initiatives in place to help first home buyers across the nation, it’s still difficult for buyers to work, pay rent on their current accommodation, take care of bills and living costs and then put some money away for their home loan goals.
If you’re hoping to save up for your own slice of Surfers Paradise property, here are some tips to consider in the long run.
Cut up your credit card
While cutting it up may be a little extreme, it’s a serious suggestion to consider putting your credit card away while you’re saving up for a home loan. It’s very easy to get carried away with credit products, so putting it at the bottom of your drawer or giving it to a close friend to look after is a great way to get into the right mind set.
While you may think it’s okay to use the credit card because you don’t immediately have to pay it back, that’s a big pitfall. This is because interest begins to accumulate on credit balances, which ultimately means you’ll end up paying back more than the original amount.
Cut down on superfluous spending
Purchasing a coffee every morning or going out for lunch may not seem like it’s holding you back from saving. After all, it’s only a small amount of money each time. But after a whole week’s worth of these treats, the cost starts to add up. And when you see how much is spent in a month, you’ll be shocked.
This isn’t to say you should become a complete scrooge when it comes to going out with friends or treating yourself to lunch. But it’s also a good idea to reduce the amount of spending you do on random things and begin putting that towards your real estate goals. After all, it will be so much nicer to drink a latte in your own home than simply somewhere you rent.
Shopping around for mortgages
Once you’ve started saving and getting a bit of headway, discussing your mortgage options with a financial professional will begin to give you some direction. But don’t be afraid to shop around a little and get a feel for the market.
Purchasing a property is one of the biggest commitments that most Australians will undergo in their lives, so you want to make sure you get the right deal for you and your future. Talk with friends or family members who have mortgages about their experiences and get a feel for the size of investment.
Move back home
While this may not be an ideal solution, moving back home with your parents could be an option to help you finish up your savings as soon as possible. Because you’re living there and not worrying about paying rent or expenses, you’ll be able to dedicate a larger proportion of your income to the saving process.
On a smaller scale, this could also work with taking on another flat mate or moving temporarily into a smaller, cheaper house while you’re saving. Any way you can reduce how much you’re currently spending on your accommodation is money that can go towards your own humble abode in the future.
These are just some tips to consider when trying to save up for real estate in Surfers Paradise. The process of saving up is often long and arduous, but it’s all worth it when you finally seal the deal on a property you can call your own.