BankSA outlines top tips to save for a home deposit
With this spring expected to be one of the biggest property sales periods in recent years, there will no doubt be a flood of South Australians looking to make their first home purchase.
Jane Kittel, Managing Director, BankSA said traditionally spring is a popular time of year for both home buyers and sellers.
“With this in mind, many South Australians will have been working hard to save the money they need for a deposit,’’ she said.
“We’ve compiled some important tips to help would-be home buyers knuckle down and reach their savings goal faster and achieve their aim of buying property.’’
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BankSA’s top tips to save money for a home deposit are:
- Set achievable goals – take some time to plan a limit for your purchase price and make sure it’s a figure you can really afford. You will then know how much you realistically need for a deposit
- Set a budget – this is the most important step for anyone wanting to start saving for a home loan deposit. Once you know what your goals are, set a comprehensive budget which includes all types of income, your quarterly bills and general expenses, so nothing crops up unexpectedly
- Change at least one habit – choose something you regularly buy and see if you can cut back and re-direct the savings. For example, make your lunch at home or buy one less coffee a day. You’ll be surprised how quickly the savings add up
- Reward yourself – set yourself saving milestones and treat yourself to something small for each milestone reached
- Stay focused – don’t let yourself be tempted by other big purchases (e.g. a later model car when your current one works just fine!), remind yourself of why having your own home is important to you
- High interest savings account – choose a savings account that gives you the highest interest rate and deposit a set percentage of your income in your savings account each week
- Get competitive – find a friend or family member who is also saving for a home deposit, and start a bit of friendly rivalry to help boost motivation
- Keep track of your spending – use technology such as online banking to keep track of spending and limit impulse purchases
Ms Kittel also said that setting a budget was the most effective way to help boost savings.
“It’s a proven and simple process available to anyone that will help to rein in spending and increase motivation to save more,’’ she said.
“There are a lot of fantastic deals on fixed and variable rate home loans at the moment, making it the perfect time to get into the property market.’’
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