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How to Save for a House Deposit

15.06.20 - Buying Process, Finance

For first-time home buyers, it’s never been more expensive – or more frustrating – to get into the housing market. Older generations say it’s because the young are obsessed with smashed avocado on toast, while the younger generations blame the impossibly high standards set by Baby Boomers.

Regardless of which side you’re taking, there’s no harm in having a solid savings plan in place for buying your first home. Here are our top 5 tips on how to save for a house – so that you can have your smashed avo and eat it too.

Stick to Your (Realistic) Savings Goal

how to budget for a house

Having a budget is one thing, but sticking to it is another thing entirely. One of the best tips we can give when it comes to how to save for a house deposit, is to lay out your budget and stay on track – whether that means starting with a small savings goal and growing it over time, or being firm on a decided savings goal each and every payday.

Whatever goal you set, make sure it’s realistic. Watching your savings go up, even if bit by bit, will be better in the long run than setting too lofty a goal for yourself and having to constantly dip into your savings.

Not sure how much to save for a house deposit? A general rule is a 10-20% deposit, so figuring out a guesstimate on what you’ll be spending on a house will give you a starting point for your savings goal.

Live with Flatmates or Parents

live with flatmates to save for a house deposit

It may not be for everyone, but moving back into the family home or living with flatmates allows you to split or lower the costs of rent, utilities and other bills, saving you a bunch of money. Some people may laugh at the idea of you moving back in with mum and dad, but when you tell them how much money you’re saving, they probably won’t be laughing anymore.

Try a Side Hustle

Another not-for-everyone tip on how to save for a house, but a very viable one all the same. The internet is your portal to a secondary income, even if it’s only a small one. Depending on your skills, you can use sites such as Air Tasker, Fiverr and Upwork to siphon some extra cash into your savings by doing small jobs, or you could try a larger company such as Uber, DiDi or Ola – all you’ll need is a car.

Shop Smart

shop smart

This is a great approach to shopping in general. Shake up your routine by turning your trolley away from the big two supermarkets and try shopping at the more affordable Aldi – you can expect savings up to 59%, which in our opinion is a no-brainer approach when you’re not sure how to save for a house deposit. If you’re loyal to Coles, Woolworths or another supermarket chain, try shopping their budget-tier home brands instead. These can bring a 40% reduction to your grocery bill.

Outside of grocery shopping, try eBay and similar sites to purchase everything from clothing to electronics second-hand – you’ll be surprised at just how much money you can save, and you’ll be doing your bit to stop perfectly usable items from ending up in landfill.

Review Your Finances

Whether it’s your insurance company, your electricity provider or your internet service, it’s always best to compare prices and, if need be, switch to the cheaper option. Chances are that, if you say you’re moving to company with a better deal, your current provider will try to keep you on board by price-matching. This means no hassle for you and money saved every month!

Save Money on Your Commute

save money on your commute

If you’re the type to drive to work, you’re probably spending a small fortune on your commute every day. Between fuel, tolls and parking, the costs add up – parking alone in the Brisbane CBD costs on average around $28 an hour for off-street parking, and free parking is very difficult to find. So instead of driving, consider using public transport instead, or go even cheaper by biking or walking to work.

And Finally: How long will it take to save a deposit?

How long does it take to save for a house deposit, you may be wondering. According to a 2018 report from Domain, a two-income household in Brisbane saving 20% of their post-tax income will take approximately 5 years to save for a median-priced property.

You’ll be surprised how affordable it is to achieve your home owning goals with Domaine Homes. Contact us to find out how we can help you get into your new home sooner.

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