Tips to save for your first home deposit

August 12, 2015 - 4 min read

Are you sick of renting? Entering the property market is a must if you want to start building your financial portfolio. While renting is less of a commitment than owning your own home, at the end of the day you’re giving your hard-earned cash away. Perhaps you feel like you don’t earn enough to save […]

Are you sick of renting? Entering the property market is a must if you want to start building your financial portfolio. While renting is less of a commitment than owning your own home, at the end of the day you’re giving your hard-earned cash away. Perhaps you feel like you don’t earn enough to save for your first home? If you get strict in regards to your budget, you’d be surprised at just how easy it can be to save for a deposit. We’ve provided a few simple tips when it comes to getting your foot in the door, as well as a few professionals who’ll be able to help.


Save every week

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Before you can even consider entering the property market, you need to have enough money saved for your home loan. While the total savings required depends on the value of the house and the type of loan you’re applying for,​ ideally you want to save between 20 and 30 per cent. This might seem a little overwhelming at first, but saving 10 per cent of your weekly pay over an extended period of time will go a long way. However tempting it may be, pretend this money doesn’t exist and don’t reach for it unless it’s an emergency—and no, a night out on the town isn’t an emergency.


Stay out of debt

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When you’re running low on money, it can be tempting to sign yourself up to a credit card. This is a short-term financial solution that generally will incur a high interest rate, which can compound if not paid off quickly. Outstanding debts can work against your credit rating, which can create more obstacles when applying for a home loan.


Avoid temptation

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Whether it’s saying no to a night out partying with friends or cooking dinner instead of dining out, there’s a number of budget sacrifices you can make on a weekly basis, that can provide positive long-term financial benefits. It could be something as little as choosing no-name brands when you shop or taking your lunch to work instead of purchasing it, every little thing counts.


Pick the right bank

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Choosing a bank you can trust matters on a number of levels. Select a bank that can give you a high-interest savings account, so you can reap the rewards of compound interest. Also, you want a bank that can offer you a low fixed-rate home loan, so you’re not spending your hard-earned savings paying off compound interest.


Need help?

Entering the property market is impossible to do without the guidance of a professional. Whether you need help purchasing your first home or you want to build one from scratch, you don’t have to go through the process alone. We’ve found a Tamworth real estate agent and builder who can help make your life a whole lot easier.

Real estate agent

Lifestyle & Rural Properties

Come in and enquire today, Lifestyle and Rural - Tamworth
Come in and enquire today, Lifestyle and Rural – Tamworth

To ensure you find the right home that suits your needs, give the friendly team at Lifestyle and Rural Properties a call today. This agency can take care of everything, from sales and market appraisals to auctions and property management. You’ll be blown away away by the dedicated team of real estate agents at this popular branch. For a contemporary and honest approach to getting the right property for you, you can’t go past Lifestyle and Rural Properties.
Where: Cnr Bourke & Peel Sts Tamworth NSW


Builder

David Bright Homes

Beautifully designed and constructed homes, David Bright Homes - Tamworth
Beautifully designed and constructed homes, David Bright Homes – Tamworth

Don’t want to take any chances when it comes to building your first home? For a trusted local business that can take care of your new build from design right through to construction, choose David Bright Homes. Known for their quality workmanship and reliable tradies, you can have peace of mind knowing David Bright Homes is taking care of your new build. For a builder that takes pride in everything they do, call David Bright Homes and book an appointment today.
Servicing: Tamworth and surrounding suburbs

Looking to move away from Tamworth? Click here to find a real estate agent or builder near you!


WHAT’S YOUR STORY?

Have you recently entered the property market for the first time? Share your experiences in the comments below!