Saving for a home deposit
Maybe you’re sick of renting and paying someone else’s mortgage.
Or, perhaps you have your home but you want to add an investment property to your portfolio.
Sometimes the biggest hurdle people have to overcome is finding the deposit – the 10-20% to get you started. Here are some simple ways you can get started in saving the money you need.
Find a second job
While this might not sound like an attractive proposition – remember: short term pain for long term gain. Knowing what you can achieve and why you want to achieve it is a great motivation. There may be some local jobs such as dog walking or house cleaning that won’t require you going far from home. The extra money you earn can be put straight into a savings account for the deposit. This adds the incentive of watching the money grow every time you receive payment.
There’s never a bad time for a bit of self-reflection, and if you are motivated to get into the property market, it will be helpful to take stock of the lifestyle you are leading. You will probably find ways to spend less money fairly easily. Perhaps you can take your own lunch to work every day or cut down on the number of coffees you buy. Perhaps you can go without Netflix, Foxtel or some other subscription. While this may be hard, the endpoint you are aiming for is much more valuable than any of the things you have cut out. As well, so long as you take this money and put it directly into your savings account, you will be further motivated by watching your deposit grow.
The Victorian Government currently have open the HomesVic shared equity scheme, which offers assistance to first home buyers. Schemes of this type change regularly – especially as governments change – but it is worth doing the research to find out what is on offer.
For those who are not first home buyers, there is an option to buy investment property with a Self-Managed Super Fund (you’ll find a little bit more information about these here). An SMSF can be a great way of not only controlling your retirement planning but giving you access to funds for investment.
Accrue Real Estate are a property short listing company with close ties to professionals in the financial and real estate industry. Contact our friendly staff to discuss ways we can help you realise your property goals.