Despite the recent small rise in interest rates by some of the major banks, there has never been a better time to buy property in Brisbane. Low interest loans and median property prices much lower than Sydney and Melbourne are still attracting buyers into the real estate market.
Buyers with a reasonable deposit are in a much better position to secure their ideal property than those who have to borrow most of the funds. Having a smaller mortgage to service is less stressful and gives the borrowers some room to spend money on other, more pleasurable pursuits. Despite what others may say, it is possible to save a deposit but it does involve commitment.
We asked a few of our clients for their top money-saving suggestions and without exception, they nominated sticking to a budget as the place to start. As boring as it sounds, this advice has been around for many years, but they also offered a few other tips that set them on the property ownership path. To help other prospective buyers, Position One Property suggests using these other additional strategies.
Keep Deposit Savings Separate from Other Funds
Open an interest-bearing account specifically for a property deposit and use whatever means available to lock the funds in so they cannot be plundered for other uses. Commit to making regular deposits. The old adage of saving 10% of your gross income is an excellent place to start. This is likely to have a major impact on the budget for those who spend everything they earn, but having the discipline to change old habits is essential if you are serious about saving a deposit.
Pay Off Existing Loans Quickly
Other debts such as credit cards or a personal loan should be paid off quickly. This will immediately free up hundreds of dollars a month that can be put into the deposit savings account. Again, having a strict budget should leave money available for this that would otherwise have been spent. If not, sell unwanted items at a garage sale or online and use the proceeds to pay off debt.
Be Ruthless with Unnecessary Luxuries
It is surprising how much money we waste on things we could do without. Cancelling TV or other similar subscriptions can save around $100 a month or $1,200 a year. Taking lunch to work instead of buying it every day should save around $200 a month or $2,400 a year.
Get a Part Time Job
For those who can, this is a quick way to boost the deposit savings account. A couple of shifts each week at a restaurant or take-away, mowing lawns or any other casual jobs that suit could add $1,000 a month to the deposit account.
Having given all this advice, the other attribute we notice in people who manage to save a substantial deposit is determination. With the willingness to change old habits and stick to a savings plan, anyone can save a home deposit. When you are ready to look for real estate, contact us here at Position One Property** **and we will help you find your perfect place.