If you are serious about saving up for your first home and need to get enough money for the deposit, then read the following top tips and you will soon be booking your first appointment with a home loans broker.
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Get your budget sorted
Put pen to paper and set down all your income and expenditure. Look at what is left over, and you have an idea of what money you can put aside to cover the first home loan deposit. You also need to forecast what repayments you can afford on the property you are looking to buy and set your price bracket for the first home.
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Talk to the specialists
Once you have got a budget in place, make an appointment to see a home loans broker. If you are in Melbourne, there are a number of lenders available but you need to do your research and speak to the ones who offer discounted rate loans or variable rate loans. The discounted rate loans are particularly attractive to first time buyers because they keep repayments to a minimum interest level set below the variable rate for an initial time period. You will then know how much you are looking to save on a monthly basis in order to afford the first home loan deposit.
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Prioritise the ways to save
The biggest outcome you will probably have is your monthly rental so think about how you can cut back on this amount. If possible, speak to your family and ask if you can move back on a temporary basis to the family home but on an agreed short-term basis. If you pay rent to the bank of mum and dad for a smaller sum than the current rent while stillcontributing to the house bills, the remainder can be put into a savings account towards your home loan deposit.
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Downsize
If you are not able to head back to yourparents’, then go in for a house share or downsize to save money on rent.
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Putting your room up for rent
If you cannot downsize, and have a spare room, why not rent this out to get more income? If you don’t want to share your space all the time, make some extra dollars by renting your place out only while you’re away.
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Staycations
Trimming down the budget means on a temporary basis, cutting back on a few of the luxury items. Camping or house swapping with friends will be just a good a holiday break from the usual routine as booking to go away on an overseas trip.
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Transport costs
Running a vehicle is not cheap so consider, if you can, taking public transport or walking and cycling to work. Or try a car share so you can get some money towards the cost of gas and parking, while being environmentally friendly at the same time.
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Utility bills
Ensuring the bills you pay are not estimates but real amounts will soon save on dollars and cents and speed up the day you sign the paperwork with your home loans broker in Melbourne. Some utility companies may give discounts if you set up a direct debit, so be smart with your energy suppliers and your energy consumption.
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Coffee to go
If you are in the habit of buying your coffee every morning, work out how much you spend in one year and factor this against the cost of your home loan deposit. Then, start making your own before leaving home each morning – it all adds up!
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Pack your own snack
As with the coffee costs, buying a sandwich each day will soon eat a hole in your budget so make your own packed lunch.
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Plan your menu
Organise your meals a week or two in advance, make a shopping list and stick to it so you don’t impulse buy. If there are special offers, then make up several meals and freeze what you don’t use. Any leftovers can go into the following day’s dish.
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Home entertainment
Cut back on eating out but invite friends’ round for a potluck supper, take it in turns to host and each bring a starter, main and dessert. This will save on taxi fares and expensive rounds of drinks in the bar as well.
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Lights out
Swap to energy efficient lighting and don’t leave lamps on when you leave the house. When you are not using a particular room in the house,it’s also good to switch off the lights.
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Wash day blues
Wash clothes on the lowest temperature and dry them outside rather than use a tumble dryer and your bank account will start to increase.
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Check out the top shops
Clothes swaps or rummaging through the op shops can often produce just the bargain you are looking for and get you even nearer to the day where you will be discussing your first home loan deposit with your local home loans broker.
Owning your own home is the great Australian dream, yet for many these days, that’s exactly how it feels like – a dream. However, if you bear these tips in mind and keep your mind focused on the end goal, buying a home to live in or as an investment isn’t impossible.
