Ignore the voices in your head that you can’t save for a house deposit quite fast because it is possible with the right saving techniques.
Ideally, all you need to is a 20% down payment for most properties and you can be a homeowner faster than you can blink.
So how do you save for a house deposit faster?
1. Have a goal in mind
Without a goal, you’re going to get flustered, confused and discouraged. How much should you save? When should you buy your house? Can you even afford a home?
To answer these questions correctly, you must be realistic about the kind of house you can afford. From a single-family house to a multi-family home or even a condo, you have a variety of options to chose from.
For a more accurate calculation, speak to an estate agent to help you find your preferred type of house, the current and projected cost as well as the plan.
2. Realign your budget
Once you have a figure in mind, the next step is to plan how best you can save. The good news is that with proper planning, even with a minimum wage you can still buy a house.
The current minimum wage pays roughly $25,732 a year before taxes, which is enough for your deposit. But living on air alone is unrealistic.
However, if you can cut down your costs and save 10% of that each year, you’ll have enough for your deposit in less than seven years. That equates to saving $14 a day, which can be reduced from groceries, taking a packed lunch to work or cutting down on drinks.
Now, seven years may seem like a nail-biting eternity, but it’s much shorter when you put your money to work.
3. Get the right savings account
First time home buyers are frequent users of a call deposit account. You can get these at any bank and you will always have access to your cash when needed.
However, access means lower interest rates, and hinders you from reaching your target pretty quickly. Favourable rates are offered to accounts with huge deposits that remain untouched for long periods.
4. Explore other rent saving measures
There are other ways to save on rent or avoid it altogether. You can be a house sitter. Depending on the deal you get, you might live rent-free for up to a year. You may have to pay bills or look after a pet gorilla, but it’ll be worth it.
You can also live with a friend, which will reduce your rent by half. Another option is to get a lodger.
The fourth option is to move into a smaller or cheaper place. Low rent but higher bills could still mean more expenditure per month, so keep an eye out on all house-related costs.
Undoubtedly, it’s never that easy to save for a house deposit as you to persevere and stay disciplined. Once you’ve raised your deposit and move into your new home, you’ll have better control of your financial future.