If you’re getting serious about purchasing your first home, it’s probably time to take a good hard look at your spending habits. In a perfect world, before applying for a home loan, you would have saved AT LEAST a 5% deposit – which is $25,000 if you’re looking at houses in the $500,000 – price range (which is quite common). Whatever your goal is, whether that be to save $25k or $100k, you may still apply the same savings habits.
Reaching this deposit goal might seem unattainable, but have you considered how a few simple lifestyle changes could make a huge impact on your saving ability.
We’ve come up with a few ideas that could help you save more for a house deposit:
Kick that coffee or tea habit – make a takeaway one at home instead – $4.50 x 365 = $1,642
Cancel the Gym Membership you never use – $100 x 12 = $1,200
Take your lunch to work – $15 x 5 = $60 x 52 = $3,900
Stop ordering Uber eats or take out – $30 x 2 = $60 x 52 = $3,120
Walk/Cycle to work, or take public transport– $60 x 52 = $3,120
Skip those after work beers – $10 x 4 = $40 x 52 = $2,080
TOTAL SAVINGS APPROX $15,062 yearly (savings are estimated based on average Perth prices)
To achieve a savings goal of $36,250 (based on a 5% deposit of $725k) over a 5 year period (not including interest), you would need to roughly deposit $604 monthly into a savings account (Or $7,250 yearly), which is WAY less than the combined savings listed above.
Again, if you’re aiming for a house price of closer to $500,000, your 5% deposit would be $25,000. This means you would need to save $417 monthly (or $5,000 yearly) to achieve your savings goal within 5 years.
If you have any questions about your savings, or budget, please feel free to give me a call on 0412411823.