Saving for a house deposit can seem like a lifelong job, but it need not be so. With financial discipline and careful planning, you can save for your house deposit without losing your life in the process. Wondering how to save for a house deposit in a year? Not sure where to begin?
In this article, we show you how to save for a house deposit fast. These five actionable steps can help achieve your goal in no time.
Be Wise About How You Spend
Saving is easier said than done. Saving involves letting go of many things you love, which can leave you dissatisfied and frustrated. These negative emotions can take over the emotions of joy and fulfilment that saving for a home usually brings.
The key to happy saving lies in balancing your act. Avoid becoming too obsessed with saving.
Spend on items you need while skipping the items you want.
For example, if you have a thing for branded clothing, go for it. If possible, search for deals that can fetch you your favourite brands at bargain prices.
Balance this spending by saving on other expenses, say by using public transport instead of driving your car to save on fuel costs or downsizing your grocery list.
This way, saving money will make you happy, not resentful. When you are happy saving, you are more likely to continue doing it!
Save for Your Deposit First, Spend on Life Later
This strategy can come handy for those wondering how to save for a house deposit in a year.
Every month, as soon as you receive your salary, practise saving for your house deposit before planning the monthly spending.
Ensure that the amount you set aside for your deposit is generous. In Australia, major banks and financial institutions need at least 20% of the purchase price of a property as deposit.
If you have a property in mind, find out its market value. So, for example, if the market value of a property is $400,000, you will need $80,000 as deposit.
Now, begin to save with that figure in mind.
Check your Eligibility for the First Homeowners Grant
Check if you are eligible for the first homeowner’s grant. You may be eligible for a First Homeowner Grant (FHOG) of $10,000 if you are building or buying your first home.
If you are building a new home in regional Victoria and your contract has been signed between 1 July 2017 and 30 June 2020, the FHOG is $20,000.
For more information about FHOG, visit the State Revenue Office Victoria website.
If you are eligible for the FHOG, you could buy a property with just a 3% deposit.
Make Way for a Second Income
Unless your employment contract specifically states that you are not to use your skills that got you hired, outside of your job, consider ways to create a second income.
This way, you’ll be able to use your salary towards the monthly expenses while your second income goes straight to the house deposit fund.
There are several ways to earn a second income – you could use your hobby of writing to create a blog and sell affiliate products; you could use your cooking skills to make money by taking weekend classes; or you could become an online tutor, teaching your favourite subject on the weekends.
Find Ways to Save Money on Rent
A practical idea for saving for a house deposit whilst renting is to move into your parents’ or in-laws’ house. The money you save on rent can go towards the house deposit fund.
Another way to save for a house deposit whilst renting is to move to a house with a lower rent. Even a saving of $75 or $100 per week can result in a sizable saving for your deposit in the long run.
These five ideas can go a long way in helping you save for your house deposit. Saving for your house deposit doesn’t mean you stop living. You simply have to keep your eyes open for practical ways to achieve your goal.
If you are looking to buy a home in Narre Warren, Berwick, Cranbourne or the surrounding areas, Only Estate Agents are here to help. We are Narre Warren’s trusted real estate agents with many years of experience.
We can help you find the right property at a price that fits your budget. Why not give us a call to discuss your requirements? Call 8786 8889 now for an appointment.