10 Tips to Save for a Home Deposit

Struggling to save for a home deposit? We’ve got 10 tips to help you get into your new home sooner.

  1. Choose a budget and stick to it-Sounds simple enough, but we all get caught up in impulse purchases which chew into our savings. Setting a budget will keep you focused on your savings path.
  2.  Separate your needs and wants-Paying your car insurance is necessary, but do you really need the brand new Apple iPhone Xs? Identifying your non-essential items can allow you to purchase them at a later date that is more suitable for you.
  3. Set up an automatic transfer into a separate bank account-If you can get into the habit of setting aside money each week into a savings account; you can accumulate your wealth without spending it on everyday items.
  4. Reduce your debt-Pay off your credit cards, personal loans or any outstanding fees if possible. Reducing or eliminating these debts will help you increase the amount of money you can borrow later on.
  5. Track your spending –You’ll be surprised by how much you’re spending on insignificant items. That $5 daily coffee might not seem much, but over a year that can add up to $1,200. Don’t worry about recording spending; it seems hard as most banks categorise your expenses in their online portals.
  6. Look for the best sales-You might be able to purchase your weekly groceries for $80 from the closest supermarket, but the shop 5 minutes down the road could have them for $50. With online shopping becoming more mainstream, being able to compare pricing is getting even easier.
  7. Sell what you don’t need- The Marie Kondo craze has become a worldwide phenomenon and there’s a good reason. There are plenty of swap-meets around Perth where you can see your second-hand treasures and pocket some cash in the meantime.
  8. Assess your rental situation- If you’re renting, the best way to save is to move back home with parents, but that’s not always a viable option. Moving into a cheaper rental may not tick all your boxes, but as a short-term solution, it can help you save money.
  9. Stay local- Australians love to travel, and many first home buyers don’t want to sacrifice their holidays in favour of buying. Instead of going overseas, stay local within WA. We’ve got stunning coastlines, breathtaking forests and rocky gorges that make the rest of the world envious.
  10.  Look for low deposit options– Home of My Own Foundation, a not-for-profit that can provide grants up to $5,000 as your deposit. If you’re a first home buyer and think you might eligible, get in touch with us and we can chat.

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