I thought I would write some tips on how to get closer to owning your own home. This is a hot topic at the moment with Sydney house prices sky rocketing and with no end to the growth in sight. The thing is while people want to live and work close to the CBD of Sydney there will always be a high demand for housing which I think will keep driving prices up at least for the near future. Even the little Brighton beach huts in the picture above cost over $200,000 each today. It might be a long road ahead to save that deposit but hopefully these tips will help.
- Set up an automatic savings plan on pay day linked to an online savings account. Sometimes it’s even better to set up an account that’s not with your normal bank so when the funds go out they aren’t easily transferred back if you want to dip in to them. ING online savings maximizer accounts are great for this.
- Cut down on eating out and ordering take away food. If you normally eat out a lot you will be able to save a little extra each month by cutting it down and getting in to the kitchen at home to cook some healthy meals. You don’t have to be in the kitchen for hours just keep it simple. Give one of Jaimie’s 15 minute meals a try. It might take an hour in real life but it will still be fun to cook and hopefully tasty!
- Write up a plan including how much the house you want to buy is, how much stamp duty and buying costs are and how long it will take to save a 20% deposit. Even if it takes 5 years or more it’s worth the wait. A 20% deposit will mean you will be exempt from paying lenders mortgage insurance and will also mean you will own a decent amount of your own home when you move in. If you can’t afford to save the 20% for where you want to live then look at buying in a cheaper area as an investment and rent where you want to live.
- Challenge yourself to a buy nothing new for a month. Other than food and other necessities make a promise for the next month to not buying anything. This will allow you to take a break from consuming and really reassess any future purchases. You might really want that amazing coat this week but give it a month and a few extra dollars in your savings account and you might think twice about it.
- Be grateful and patient as we live in one of the most amazing countries in the world. We need to remind ourselves how lucky we are to be born with endless opportunities in our lives. Yes house prices are high but our living standards are so high compared with many other countries. We have access to clean water, good sanitation, food and shelter. Patience is the key when saving your deposit and just know that saving a little now will help you in the future.