Getting That Deposit – Five Saving Strategies
Your Health Insurance Could Be the Key
You need to put together a deposit before you start thinking about your auction bidding tactics. Without a deposit, you’ll find few sellers willing to deal with you. Most lenders will also refuse to offer loans to those who haven’t saved any money. That makes saving a deposit one of the most important things to do before buying at auction.
Good buyer’s agents in Sydney can offer some advice on saving a deposit. Here are a few tips that will get you on your way.
Create a Budget
Your first step is to create a budget. Make a list of outgoings and divide that list into necessary and unneeded expenditures.
It may surprise you to see how much you spend each month on things you don’t need. Even something simple, like avoiding name brand clothing, can save hundreds of dollars that can help with your deposit.
Check Your Health Insurance
Do you know what extras you’re paying for on your health insurance policy? Do you need all of those extras? Answering these questions can help you save a lot of money.
Look at your policy. You may have extras, such as acupuncture or speech therapy. Most people don’t need these extras. Getting rid of them will lower the cost of the policy. You can save this money to go towards your deposit.
Return to Your Parent’s Home
Renting a property while saving slows everything down. All of the money you put towards payments could go into your savings account.
Sometimes, it’s best to move back home. Talk to your parents to find out whether they will offer you somewhere to stay while you save. Create an agreement that states how much work you’ll do around the house and whether you’ll pay rent. Usually, you’ll find these outgoings to be lower than what you pay each month in rent.
Curb Your Eating Habits
Grabbing coffee on the way to work is something that many of us do. Perhaps you also buy a lot of takeout or eat out every night. All of these things cost you more money than if you did it yourself.
You should prepare your meals at home. Each home-cooked meal could save you a few dollars that you can put toward your deposit.
Check Government Schemes
You may be eligible for the First Home Owner Grant (FHOG) if you have never bought a property before. All states in Australia offer the FHOG, though you need to meet several conditions to access it.
A buyer’s agent in Sydney may advise you on how to apply for the grant. Some states even offer additional grants. In some cases, the FHOG will cover your deposit. This is most often the case with low-value properties.
Cancel Unused Memberships
How many of you have memberships you don’t use? That New Year’s resolution may have led to you joining a gym. However, that membership card isn’t doing you much good if you haven’t been for a few months.
Go through your memberships and cancel any you don’t use. You can save money on gym memberships, streaming television subscriptions, and any other memberships that don’t serve you right now.