How to Save More Money for Your First Home
Thinking about getting into the housing market and owning a home of your own? Saving for a house deposit takes time — years for most people — but there are ways to save for that home deposit and get into a house of your own sooner. Whether you’ve already started saving or you’ve just decided it’s time, here are some handy tips to get you there sooner.
Stick to Your Budget
It’s one thing to create a budget and something else entirely to stick to it. If you’re to save for a house and land package in Newcastle, Sydney, the Canberra Region, or anywhere in Australia, you need to stick to the budget you create.
For many people, this means minimising nights out and cooking at home instead of eating lunches out at work. It will likely also mean keeping expensive holidays to a minimum and cutting down on ‘nice-to-haves’ like extra clothes and daily lattes at the local cafe. However, there’s no need to be cruel and unkind to yourself when your saving and spending goals are realistic and achievable. Having said that, no exceptions and no excuses and given the current COVID-19 situation many people will have already discovered how much money can be saved when these things are removed from the weekly budget.
If you don't have a formal budget you can get started with our budget planning calculator.
Put Your Savings to Work
Letting your savings sit idle in a savings account won’t get you into a new home any sooner and you may find that your savings aren’t even keeping up with inflation. Shop around for a savings account with the best interest rate and look at long-term accounts as well. If you’re going to save for several years, saving in term deposits makes good financial sense. What’s more, the frequency in which you save is important. Save every week, and you’ll put more away in the long run and get there sooner.
While saving for a deposit it’s imperative to avoid debt and look for ways to cut your existing debts. Avoid taking on new debt wherever possible and consider putting the money that you’d otherwise save for a deposit into any personal loan and credit card debts first. This way you can eliminate the ongoing interest and put more into the deposit in the long-term.
Consider a Part-Time Job
Many Australians work a second job when saving for a home deposit. This isn’t ideal or even possible for many people due to family and other commitments. However, if there’s an opportunity to work a few more hours a week and save that deposit sooner, why not make the most of it? It doesn’t have to be for a long time either. Freelancing on occasion or working part-time for six months and saving everything you earn could slash the time it takes to save the deposit.
Know What you’re Eligible For
As a first homebuyer, you’re eligible for the first homebuyer stamp duty exemption and a variety of financial incentives like the First Home Owners Grant and First Home Loan Deposit Scheme. These incentives make buying your first home more achievable but you’ll still need to save hard for that deposit.
Are you interested in a house and land package? Contact us online or 1300 555 382 to chat with a McDonald Homes Building and Design Consultant about the first homebuyer house and land packages available in your preferred area and how you can get into a new-build home of your own sooner.