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Nov 23, 2018

Tips To Save A Deposit For Your First Home

For some Australians, home ownership can feel like an unreachable dream – but it doesn’t have to be. Strong first home buyer data proves that it is absolutely achievable to break into the property market, and that the dream of home ownership is alive and well in Australia.

If you’re looking to pool your pennies and turn that home ownership dream into reality, you’re going to need a deposit. How can you get a head-start on those savings? Here are four handy tips to help you along, courtesy of the Aston Homes team. Enjoy!

Budget right

All good saving plans start with a budget! Once you know how much you’re spending, you can identify areas where you’re able to make cuts. Scaling back on your daily flat white can be great start, and temporarily moving in with family (if you can) is likely to stockpile those savings at an accelerated rate. While you’ll want to save as much as possible, make sure your budget is achievable and sustainable. You’re far more likely to save more in fourteen months of conscious saving than fourteen days of big savings! Think long-term!

Side hustle

Good news, first home buyers! There may be a nice cash boost to your deposit laying right under your nose. According to the 2018 Gumtree Second Hand Economy report, the average Australian has twenty-five unwanted items in their home, valued at an estimated $4200 per household. Items such as clothing, shoes and accessories are the most popular items to sell, according to the Gumtree report, followed by homewares and furniture. Electronics and smartphones also have resale value, as technology is so frequently upgraded and these items are hot in demand. We suggest you jump onto your local ‘buy, swap and sell page’ and see if you can turn that trash into cash!

First home grants and government incentives

Did you know there are perks and programs available that could provide you with a little extra dosh towards the deposit for your first home? As a first home buyer, you may be eligible for the First Home Owner Grant scheme. Victorians buying or building a new home (valued up to $750,000) may be eligible for a payment of $10,000 under this scheme – that could make a significant difference to your deposit! Interested to learn if you’re eligible? Helpfully, the Aston Homes team explore into this topic in greater detail in our recent blog. Read on here.

Demonstrate saving behaviours in your bank account.

When purchasing your first property (and therefore applying for your first mortgage) it’s important to note that potential lenders will consider more than just the deposit sitting in your bank account. Lenders will also be examining your capacity to repay the loan. Lenders want to know where your money comes from, and ideally, a demonstrable ability to save. If you can prove that your deposit came from buckling down and saving your salary, you’re in a good position. Having evidence that you’re a savvy saver will assist in the long term. Our tip? Get those paper trails started today!

The Aston Homes team would be happy to discuss the next step towards owning your first home. We also welcome you to visit our display homes and explore our communities as an option. Our doors are open from 11AM to 5PM daily at both of our locations. For more information, please contact our sales team.