Money Saving Tips for First Home Buyers
For most people, saving up for a new home can be a difficult process. If you’re currently a renter but you’re saving for a house, congratulations, you’re already on the way out of the renting cycle! Stay diligent, motivated and follow these tips for buying your first home.
Here at Hudson Homes, we have put together a list of 8 top tips for first-home buyers, to increase the savings in their first home savings account. We discuss the best ways to save for a home deposit in New South Wales or Queensland and answer questions such as “how much should I spend on first home deposits?”.
Tip 1: Make Money, Save Money – The Best Ways to Save for a House Deposit
The best way to save money is to budget, spend less on frivolities and put more money into your savings. When talking about tips for buying your first home, it is a good idea to consider a side-hustle or a secondary income stream. Then, all this income can be put away into your savings account. Consider undertaking overtime hours, freelance work, picking up a secondary part time or casual job or selling things you don’t need (or you have crafted) online. If you’re a musician, you could hold music lessons for kids from your living room. If you are an artist, you could sell prints online or hold market stalls. When saving for your first home, these things can really get the ball rolling.
Tip 2: Know What You Spend & Budget – Best Tips to Saving Money
If you know what you spend, you know what you can save. Creating a budget is really the first step in getting serious about saving for a house. List all avenues of income against all the things that you spend money on, in a weekly or monthly format. By listing these things out and organising your spending habits, you can see what things you could cut down on to create extra savings.
Tip 3: Look for a Better Deal – Ways to Save For a House Deposit
You may be able to save a lot of money on the services you currently already use by doing a bit of competitor research. You will probably find that you can spend less for the same service by switching to a different provider. Look at your energy, gas, water, internet, and phone plan providers and see if you can secure a better deal.
Tip 4: Don’t Use Credit Cards – Money Saving Tips Australia
If you want to save money for a deposit, it is good practice to first pay off any existing debts and not create any others. Spending money you don’t have, means that you may lose track of what you spend and how much of your pay check you still have left after those repayments.
Tip 5: Pay Off Your Debts – Best Tips to Saving Money
An unpaid debt accrues more interest, and therefore more debt. If you can pay off existing debts and remove the constant drain to your income, your ability to save money will improve. You may also be a better candidate for a home loan without an existing debt for a car, a laptop, or a phone.
Tip 6: Set Up a Savings Plan and a First Home Savings Account
Calculate how much you need to regularly save to get to your goal. Organise your savings and set up a savings account with a high interest rate that you can add money to. Consider opening multiple accounts, so that you are not drawing from your savings account to pay for your bills.
Tip 7: Set Up Savings Goals – Ways to Save For a House Deposit
Determine your goal saving amount, how long it will realistically take to save it and be proactive about putting money in. Keep a reminder on your fridge or find the ways that work best for you to stay motivated. Some budgeters recommend splitting larger goals into smaller, more achievable goals. So, you may decide to create weekly or monthly goals along the way, so the overall deposit doesn’t seem overwhelming.
Tip 8: Find a Quality Affordable Builder
Hudson Homes provides low interest house and land packages and quality new home construction to New South Wales and Queensland. Contact us online or call us on 1300 246 200 to build your dream home with the professionals.