Tips to help you save
Dreaming of building your own home?
A blank canvas for you to make your mark – to paint, decorate and design as you see fit. Building your savings towards this purchase can be a challenge.
As a guide, you will need approximately 10% of the total purchase price of your new home as a deposit.
Don’t forget, your deposit may come from savings and potentially some of the grants and incentives available. The Queensland Government’s First Home Owners Grant offers an excellent opportunity with $15k towards your property purchase. You may also be able to access other grants and stamp duty exemptions.
Top 5 tips to save a deposit sooner
- Put 10% of your pay check aside, potentially even in a separate bank account
- Consider selling items you don’t need anymore
- Pay off your debt, particularly credit card debt
- Eliminate luxuries and non-essential items – pay TV, eating out, memberships
- Look for extra ways to make money – babysitting, tutoring, teaching English to foreigners, part time job
How to get started
Download one of the free easy-to-use award winning apps: choose from TrackMyGOALS or TrackMySPEND.
Source: ASIC’s MoneySmart website, moneysmart.gov.au, 23 July 2015. Reproduced with permission of ASIC
CALCULATE: Use an online calculator to help you determine how much you can borrow.
RESEARCH: Meet with your bank and financial institution to understand your borrowing capacity, repayments, etc.
BUDGET: Create a budget and stick to it as much as possible.
MANAGE: Manage your debts.
REVIEW: Review your current banking, including interest rates, fees and charges. Shop around for the most competitive offer.
- Be smart with your money: remember every little bit counts so make sure you maximise your opportunities to save.
- Set up a dedicated account for your deposit savings, one that rewards you for regular deposits and no withdrawals.
- Set a realistic budget for your first home purchase: a lower priced home may mean you can get into the market a little more quickly.
- Look at options to lower your weekly spend on groceries, rent and other household expenses.
- Postpone holidays and other major expenses until you’re settled in your new home.
- See if anyone would be willing to help with your deposit.
Don’t forget the extra costs
Don’t forget that when buying your home there are a number of associated costs and fees that you may incur along the way. When setting your budget, don’t forget to research and budget for the items below.
- Solicitor/conveyancing fees
- Loan application fees
- Property valuation fees
- Stamp duty - Transfer duty and first home buyers grant estimator
- Moving costs
- Insurance for building and contents
- Mortgage protection insurance
- Phone line, internet & electricity connections