| Tips on Saving for a House Deposit

The Great Australian Dream!  With increasing house prices and cost of living, you need a well thought-out deposit strategy.

In recent years, Australian house prices have increased dramatically. Obviously this also increases the size of the deposit that you need.

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At 20% deposit, a $500k house requires a deposit of 100k.

– If you qualify for the First Home Loan Deposit Scheme you may be able to purchase a home with as little as 5% deposit

There are two ways to save for your deposit.
1- Save More
2 – Spend Less
Both equally important, but easier said than done.

Assess your budget
Budgeting and controlling spending is about systems.  Not fly by the seat of your pants. Without discipline there will be no success.

Do you really know exactly how much money you waste that adds no value? Think about it – Just One coffee a day @ $4 x365 = $1460.
– Just by cutting one coffee a day!

Start by Working out both your monthly income and expenses.
Include all your regular expenses and any debts you have (eg: credit cards, car loan, Afterpay etc). You will most like find you are able to cut out a few unnecessary expenses?  Make sure your budget is achievable.

Get on top of your debts
Too much debt will break your budget – and make it extremely hard to achieve your saving goals.

Credit cards are the most common debt trap. You MUST cut down (or eliminate) your credit card purchases and resulting interest and debt. You simply can’t save effectively if you are paying off large debts.

Look at consolidating your outstanding debts into a low interest loan and then only keep one credit card with a small limit for emergencies.

Cut down on unnecessary spending and debts – You will save a fortune in interest and your bank will look more favourably on you when it is time to apply for a home loan.

If you’re saving for your first home, research the first home buyers schemes available to you.

Talk to you bank about different accounts and the ways that they can help you. They will be able to maximise your interest earnings and reduce your temptation to spend.

Make sure you have a demonstrated savings history  Lenders will not approve you if you cannot show you are responsible with your finances.


Disclaimer:  Although all care is taken.  We do not give any warranty whatsoever to the accuracy of any content.
This is not meant to be financial or professional advice and is only of general nature.  You must seek professional advice before taking any actions. The above information comes with no warranties whatsoever.  We take no responsibility for any actions you may or may not take. All content is of general nature only and is NOT to be taken as advice whatsoever

Gino Sotto

Residential Sales Agent
Raine & Horne Parramatta

P: 0426 228 014
E: gino@rhparramatta.com.au
W: raineandhorne.com.au/parramatta

TESTIMONIALS:

Gino’s professional attitude and friendly nature was a breath of fresh air.  Thank you for your support and professionalism throughout the sale of our property.  Appreciate the extraordinary lengths you went to to achieve an outstanding result!
Jeanne Appleton, Northmead. NSW

Excellent communication and great confidence when negotiating with buyers. Gino focussed his attention on achieving a sale price well above our expectations. Well done Gino and your selling team.
Ralph and Maryanne Pasero, Rydalmere NSW

I found the sales team at Raine and Horne Parramatta a pleasure to deal with. Their expertise and continuous updates in selling our home was outstanding. Great work Gino!
Rochelle and Casba Webb , Parramatta NSW

A genuine performance-based selling agent Gino Sotto helped us achieve a quick sale, which saved us a lot of time and money. We would not hesitate recommending Gino & his sales team to others.
Lawrence and Kim Davies . North Rocks NSW

We were delighted with Gino Sotto and the sales price achieved for our house and the specialist approach to selling residential real estate in our area.
Danny and Manal Ayoub Merrylands NSW