Buying a House: Tips for saving for a deposit
Buying a house for the first time can be a daunting process—the journey of saving for your deposit may also seem like an impossible task. Particularly if you are renting, you may require a little guidance for efficiently saving for your first home loan deposit. Thankfully, the team at Abode Real Estate in Cottesloe is well versed when it comes to working with a full range of clients, this includes first home buyers.
Below, we have put together a helpful summary detailing some of our top tips for saving for your first home deposit and buying a house sooner.
Create a realistic & achievable budget
There is no point in setting yourself a random figure to save if it’s not within your means. This will only result in you becoming disheartened when you don’t reach your savings goal by your target date. To avoid this happening, it’s a wise idea to thoroughly investigate your current cash flow and create a realistic budget. Once you have a clear idea of exactly where your money is going each week, you can identify where some unnecessary spending can be cut and instead put towards your home loan deposit goal. Small changes such as reducing the number of takeaway coffees you purchase a week, packing work lunches or switching to a cheaper gym will all make a difference when saving.
Set up a separate account for your deposit
A dedicated savings account for your home loan deposit is a great way to easily keep track of your goal. Opting for a high-interest account will also be hugely beneficial for buying a house sooner. Shop around for the different high-interest accounts available and find the one that suits your needs best. Another helpful tip is to set up a direct deposit into your savings account after your salary goes in. This will mean your savings account will grow without you needing to think too much about it and it avoids you forgetting to manually transfer funds.
Research first home buyer grants available to you
These days, there are many incentives available to assist first home buys break into the property market. The state you are based in will dictate exactly which grants are on offer. For example, here in Western Australia, the first home owner grant (FHOG) of $10,000 is available for those purchasing or building a new home which will be used as a principal place of residence. Always be sure to do your research into the potential grants you may be able to take advantage—this will ultimately speed up the process of buying a house.
Ask Abode today
The skilled and experienced team at Abode Real Estate in Cottesloe has helped countless first home buyer clients. If you are in the process of buying a house for the first time, don’t be afraid to seek the assistance of a professional. Our Perth real estate experts are here to assist—browse our current property listings or get in touch with our team today.