How can I save for a new home?

25 Jul, 2020

Did you know that only 30% of people in Australian own their home outright with no mortgage, 37% of people own their own home but have a mortgage, 25% of people are renting from a private landlord and 4% of people are renting from a state or territory housing authority.

Home ownership is one of the primary goals of most Australians. It gives people a sense of stability and security ownership and an investment in their future.

Buying a home, is without a doubt, one of the biggest and most expensive decisions you will make and also one that you need to plan for.

Some of the things that you need to consider when buying a home are:

  • The location that you want to buy in
  • The price of the property in that area
  • The amount of deposit that you need
  • The amount of money that you can borrow
  • The cost of buying.

When you know these things, you can work towards ticking each of them off your list.

While you are sourcing the location where you would like to live you can get started by saving for the deposit you will need. This may seem overwhelming but there are many things that you can do to get started.

So how can you save for a new home?

  • increase your income
  • reduce your expenses
  • spend less money shopping
  • make you own daily coffee
  • cook more meals at home
  • take lunch to work
  • invite friends over instead of going out
  • sell stuff you don’t use
  • all of the above

Answer : 9 – all of the above

Using a combination of the above, you can save money for your home deposit.

Increase Your Income

It’s a lot easier to save more money when you’re making more money. This may mean asking for a raise or it may mean upskilling or looking for a new job to advance your career and your income. For some, an increase in income might come from starting a small business on the side or taking a second job until the savings goals are met.

Reduce Your Expenses

Cutting back on what you spend doesn’t have to mean living a miserable life. It may just mean you need to get smarter about how you spend your money. If you find yourself eating out every night, consider cooking at home. When you are repeatedly getting penalised for parking in the wrong place, using too many minutes on your cell phone contract, or paying bills late, review your spending.

If you combine increasing your income with reducing your expense you will achieve your new home sooner than you think.

Owning a home is a keystone of wealth… both financial affluence and emotional security.

Suze Orman.