First home buyers are flocking to Adelaide’s north east suburbs. Golden Grove, Wynn Vale, Greenwith, Tea Tree Gully, Redwood Park, Fairview Park, Surrey Downs, Modbury Heights, Dernancourt, Fairview Park, St Agnes, Ridgehaven, Highbury, Banksia Park, Yatala Vale and Vista have become lighting rods to young couples and families. With large homes on manageable-sized property, the value continues to exceed expectations, year on year. Withproperties starting out in the low $300,000’s
and reaching well beyond $700,000, the opportunity to capitalise on a first home is very alluring. Saving for a home
is the hard part. We’ve become so accustomed to a coffee out, regular take away meals and mini-escapes to the hills. If you’ve ever wondered how young couples do it, it’s not rocket science. There’s one easy trick to remember with a few strategies to help you get there: You make money by saving it, not spending it
The strategies are what will help you reach your goal of saving for a home loan deposit. You’ll want 20% to avoid paying mortgage insurance. If you’re saving for a home at the lower end, aim to save $100,000 which will cover the deposit and any costs. If you and your partner have a combined income of $80,000, you should aim to save 20% of your income so that you have a deposit within seven years.
Sound like a long time? Not when you consider that this initial investment will deliver wealth and security for the next 50 years. When you’ve got your head around the logistics, you’re ready to execute on the plan with some tried and trusted methods towards financial independence.
Best of all, lenders will look at your saving history as an indication of your ability to repay a loan. The more disciplined you are, the better mortgage you’ll be able to negotiate when you’re ready to buy.
Prepare a budget and stay accountable to it. And yes, it’s as hard as it seems, so the next few tips may help to give you some perspective. Make it an imperative to save 20% a year – by hook or by crook.
If you have credit cards, pay them off first and use them only in an emergency. Keeping them out of your wallet and hidden at home will help you resist a must-have purchase or that extra bottle of wine after a long lunch.
Sound like it’s only $4 here and there? If there are two of you saving and you each buy three coffees a week, that’s $24 a week or $1,248 a year, or more than 10% of your savings goal!!!
You’re better off investing in an espresso machine for home use. If you’re really savvy, ask your family or friends to pitch in for the cost when your next birthday comes around. Or keep an eye out for a second-hand machine in Gumtree or eBay.
If you have the time and need a distraction from spending money, earning it can be the perfect way to speed up saving for a mortgage. A part time job in the evenings will mean less time for dinners and entertainment that eat into your savings.
If you have a large wardrobe to clear out, eBay is a great way to make some cash. Even furniture, kitchenware or sporting goods you no longer use are valuable to someone out there. Odd glasses and plates that no longer make up a set may no longer be manufactured, so someone out there is looking for them and ready to pay good money for them. Replacements.com is an excellent resource for mismatched tableware.
Little Luxuries = Big Savings
Six years is a long time, so make sure you feel treated and rewarded as you progress. If the goal is $100,000, treat yourselves every $10,000 with something special that costs you $500 or less. It could be a weekend away, or you could take turns in being rewarded with the “savings bonus” and spend it on yourself. Or be really disciplined and double your bonus on the next one so you’ve got $1000 to spend together. Make it something special where you both get to celebrate another milestone reached without compromising your goal.
Get the Right Advice
When you’re ready to start looking, contact the experts
in north east Adelaide for a free appraisal of your position and the best properties to meet your needs. Previous page