Savvy Savings Tips for Purchasing Your First Home
Are you working tirelessly towards saving for a home deposit but can’t quite seem to get ahead? We have a few tips and tweaks to share with you that may help.
Whether you are saving on your own, or with other/s, you need to sit down and create a budget to calculate how much you can save each month. Work out ways and areas you can cut your spending’s from simple things like eating out or your weekly grocery shop, to finding better deals on your internet, phone, insurance etc.
If you struggle to keep track of your spending’s, there are apps out there such as MoneySmart’s free TrackMySpendprogram which can assist you. You may find you are spending unnecessary amounts on e.g. unused gym memberships or streaming services that can easily add up over time. Try to be more conscious when making payments – we conveniently use tap’n’go or Afterpay but often don’t realise how much we have spent until the end of the week or month. Remember to keep your savings goals realistic and achievable – life is still there to enjoy along the way. You will then need to work out the timeframe in which you wish to purchase.
Once you have put together your budget, shop around for a savings account that offers the highest interest rate. Remember that the big banks aren’t always best. Set up an automated transfer into your savings account on a basis which works best for you. It eliminates the task of having to make the transfer whether it’s weekly, fortnightly, monthly and helps you stick to your goal. Also, make sure this money is not accessibly by ATM or easily transferrable on your phone.
Maximise your earnings by working extra days or hours where possible. Take on a side job if you can, every extra dollar helps. Speak to your employee to find out if you are eligible for a pay rise. A boost in your income could also increase your borrowing power.
Lastly, take advantage of the First Home Owner Grant. In Victoria, the grant is available when you buy or build your first new home. The FHOG is $20,000 for new homes built in regional Victoria, for contracts signed from 1 July 2017 to 30 June 2020. This may be a house, townhouse, apartment or unit but must be $750,000 or less, be the first sale of the property as residential premises and the home must be less than five years old. To learn more about the grant or to check if you are eligible, head to www.sro.vic.gov.au/fhogapply.
If you wish to speak to one of our friendly team members at Peake Real Estate to find out more about what is involved in purchasing a property or for any real estate advice, please contact us anytime on 9707 5300.