Published at: 6/21/2016 3:29:01 PM
Interest rates are at record lows. The jobs market is healthy. Property prices are growing at sensible - not silly - levels. Buying a first home right now could see you snare the deal of a lifetime. But you still need to clear a major hurdle - building a deposit.
Here’s how to stay pumped about saving for a first home and getting your deposit over the line.
Know your target
It’s hard to bullseye a moving target, so know exactly what you are aiming for. That means talking to lenders to understand how much you can afford to borrow and exactly what sort of deposit you need. Sure, a bigger deposit is better, but with lenders like ME a 5% deposit could get you over the line.
Declutter your life
If you’ve hit a savings slump it could be that you’re trying to cram too much into your life. Sports, hobbies, socialising, vacations. It all draws energy, and cash, away from your savings goal. Re-energise your first home deposit plans by decluttering and paring back some of activities that could be sapping valuable energy. You can pick them up again just as soon as the keys to your first home are in your hand.
Check the rate you’re earning on your savings. If your money isn’t paying a great rate, you’re doing the hard yards on your own.
Enlist the support of a bank that’s willing to do part of the heavy lifting for you. Grow your deposit in a savings account that does its fair share with a competitive interest rate.
Go back to basics
Okay, maybe you’ve lost your saving mojo. It could just be that you just need a breather. Relieve the pressure by going back to basics. Instead of, say, aiming to save $100 each week, aim to save just $20. Stick with this for a week or fortnight. Then ramp it up a little. Save $50 a week. Then $80. It could be a chance to rekindle your motivation.
Develop a personal mantra
Stay on the path to growing your deposit with a simple personal mantra like “Nothing will feel as good as owning my home”. Wheel it out whenever you’re tempted to give up the game.
If it all sounds like first home buyer boot camp, bear in mind thousands of other first home buyers make it into a place of their own every year. With energy and commitment it won’t be long before you’re up there with them.
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