The hardest thing about buying your first home is saving your deposit. And where you’re planning to buy will determine how big that deposit needs to be.
Sometimes the deposit required to live in your ideal home in your ideal suburb is just too high, so you need some options.
If your heart is set on having it all, then you need to get creative about saving your deposit. Some things you could do are:
- Find out if you’re eligible for the First Home Loan Deposit Scheme which only requires a 5% deposit.
- Find out about the First Home Super Saver Scheme that allows you to save through your Super fund. Deposits are made pre-tax and it can also lower your taxable income so you pay less tax on the remainder of your salary.
- Calculate exactly where every cent of your money goes and find where you can reduce spending and increase savings. Then create a budget and live by it.
- Get rid of credit cards and live on your allocated spending money only. No more getting into debt!
- Ask family for a loan or a gift. These requests are often better received if you put some work into presenting it – such as how much you’ve saved, how much you need, your plan for repayments, etc. Show them that you’re serious. Just don’t be offended if the answer is no.
- Get a second job.
- Find a friend or family member who could be a partial investor. Just make sure you’re both on the same page for your exit strategy as well as buying strategy. And get a contract!
- Find a cheaper property to buy. You can always continue to rent in the suburb you love, but at least buying something cheaper will get you into the market. This property will hopefully become the stepping stone to your ideal home.
We love nothing more than helping people achieve their home ownership and financial dreams.
If we can help – even if you need some money coaching before you’re ready to apply for a loan, we’re here, we’re obligation free and happy to help.
Good luck and keep your focus on your goal!
Caroline Jean Baptiste
Fortitude Valley & Greater Brisbane
07 3366 8604