If you have decided that you want to build a new house, but don’t yet have enough saved for a deposit, you may want to start making some changes to speed up the process. It may feel like you will have to make a huge amount of sacrifice and shift your lifestyle to save for a deposit, however, in reality there are lot of small adjustments that can help you save that extra $20,000-$40,000 needed to get you onto your new home journey.
Our Top Tips to Save For a House Deposit Faster!
- Put all bonus’, tax return refunds and monetary gifts towards your deposit: It may be tempting to take a holiday or just end up spending this on day to day expenses, but setting it aside for your future will be far more valuable in the long run. For many this will save you $10,000 plus a year.
- Downgrade your car: If you and your partner are saving for a deposit it will be far harder to save if you are paying registration, fuel, insurance and maintenance on two cars. If you can, either selling your car and moving to a cheaper one or sharing one car between you will save you a small fortune. This could easily save you $5,000 in a year, or release $10,000-$30,000 upfront from a sale.
- Create a second income: By now everyone has heard about the benefits of a second income. With so many options now online, making some extra money on the weekend or after your job isn’t a hard task, and can be sent straight to your house deposit savings account. Depending on what you are doing as a second job, if you can save most of this you could easily save an extra $10,000 in a year.
- Reduce the amount of rent you are paying: It is not unusual these days for couples to move back in with their parents to save faster for a house deposit. If this is an option for you, then it saves you hundreds each month, but if this isn’t an option, finding a smaller place, and saving just $100 a month on rent can add up over time.
- Cut down on your personal debt: If you have a credit card or another loan that you are paying interest on as you pay it back, tackling that early will mean that you are paying less every month to the bank on interest – that money can just be sent straight to your deposit saving account instead and can often save you a $1,000 plus over a year.
If you are saving as much as you can, but the numbers still aren’t stacking up, here are some ways you can get into your new home faster.
- Know exactly how much you need: Often people start saving for a house deposit with just a rough idea of how much they need. This can make it hard to actually achieve because you don’t know what the final goal is.
- Look into whether you are eligible for the First Home Owners Grant or stamp duty concessions: With governments trying to help first home buyers to get into the property market, there are lots of incentives available across the country that you may be eligible for. Find your states FHOG here.
- Start at a lower price point: Although it may be tempting to build your dream home for your first home, it could be delaying you moving in. Starting with a smaller house, on a smaller lot, may not be perfect, but it is a great place to start and can help you move to bigger and better things in the future.
- Consider moving further out: Building in the perfect location, close to your work or family can feel vital, but moving only 10-15 minutes further away will often save you literally tens of thousands.
- Look at a house and land package: Choosing a house and land package is a great option for people on a budget. Not only are they very well priced, but there is the option to get a fixed price house and land package through iBuildNew. This means that you don’t have to build a buffer into your budget, you are guaranteed the house at the agreed price.
- Shop around for a lender (Brokers can help): Every lender will be slightly different, and being a long-term decision it is important that you find a lender and loan that will work well for you now and into the future. For some people this just comes down to repayment amounts, but if you want to be able to pay back more, redraw or take a repayment holiday, you should shop around for the best option for you.
However you choose to save for your house deposit, iBuildNew is here to help you find a builder, developer, house design or house and land package that fits. Give us a call and have a chat about your requirements today on 1800 184 284 or book a call online.
If you’re having trouble financing, download our FREE guide today to get a comprehensive overview of what you should expect and prepare for.
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Zoe Langenberg
Zoe is passionate about coffee and interior design. You can find her most weekends exploring an art gallery or devouring a good book.
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