Tips for Saving for a House Deposit

/Tips for Saving for a House Deposit

Tips for Saving for a House Deposit

Many people desire to become homeowners at some point in their lives. It can range from owning an investment property to owning a residence. The required deposit is often determined as a percentage of the total value of the property you intend to gain. Most lenders ask for 5% of the total value.

The Australian Bureau of Statistics estimates the average value of residential houses in Australia to be over 636,000 as of March 2019. 20% of that is 127,200, which is not affordable for most aspiring homeowners.

With divergent perspectives on saving initial house deposit, these tips could go a long way in helping you save the very crucial house deposit:

Establish a budget and commit to it

a hand holding a calculator

By reviewing your monthly expenses, you can get a better view of where every coin goes. This helps you to trim down unnecessary expenses, consequently increasing your savings account. Examples of such unnecessary spending are subscriptions that you are not using. Therefore, consider Self Storage Edinburgh North as your storage service provider to store your car at an affordable price.

Saving is not as easy as it sounds and requires heavy discipline. It is therefore advisable to open a separate savings account for your house deposit. Still, on the savings account, it is prudent to get an account that offers high-interest rates with fewer fees.

Create another income stream

a man working from home on his laptop

The internet has ushered in a lot of side gigs that guarantee extra income on the side. There are many internet platforms that offer freelance jobs in the areas of copywriting, design, content creation and website and software development. This comes with a variety of platforms to market your skills, such as Airtasker.

With the advent of disruptive innovation, people have turned their cars into cabs, and roadside premises into car parks such as Self Storage Edinburgh North. Other alternative income ventures can include part-time jobs in entertainment, hospitality, surveys or sales.

Clear pending debts

man making payment online web

By reducing your debts, you can reduce debt interest greatly, meaning that money could be put aside to cater to your house deposit.

If you have many debts, you may consolidate them into one to reduce the fees incurred. This could also have a ripple effect in simplifying the debt payments. If consolidation is not a navigable option, you can consider prioritising paying debts that charge the highest interest rates.

Review your eligibility for government help

businessman shaking hands with client

If you are a first time home buyer, then you are likely to receive help from the government to save a house deposit. There are a variety of First Home Owners schemes that benefit Australian citizens who have not received the deposit grant before.

Live with your parents or flatmates

a boy moving in with his dad

This alternative may not appeal to everyone, but it can help cut cost on your side by sharing the cost with someone. If you live with your parents, you can leave your house items with Self Storage Edinburgh North, where it is safe and affordable to store your luggage.

Rent a small space

an empty studio apartment

Rent is a major monthly expense for most people. If you don’t have many household items, you can rent a smaller space that is cheaper. If this option seems appealing for you and you have a lot of household items, then you can store some at Self Storage Edinburgh North.

2020-08-19T15:15:04+00:00August 19th, 2020|