Double your deposit in half the time - Part 5
This week commences part 5 of our 7 part series on ways to save for a home deposit (which are excellent tips, no matter what you're saving for)! We share an article by Nila Sweeney, Managing Editor of Australia’s leading property investment magazine and active property investor herself, who has been writing about the Australian property markets for more than eight years. Nila's next tip is:
When you are saving remember that every little bit counts. A good saving strategy is like a marathon, it doesn't matter what you do in the short term as long as you finish the race - save sufficient deposit to buy your own home. Here are some tips to help you save more effectively:
Develop a budget and savings strategy
Start as early as you can. The sooner you start, the more time compound interest will have to kick in and help build up your savings
Every little bit counts so make sure you maximise your opportunities to save
If you are renting, try to get out of rented premises as soon as you can. Rent is wasted money
Try and save at least 20 per cent of the purchase price so you can avoid paying lender's mortgage insurance
Make sure you have a demonstrated savings history - lenders will not lend you money if they don't know you are responsible when it comes to finances
Pay off your debts. You can't save if you are paying of other loans
Give something up that you don't really need. Work out ways to save small sums of money regularly and add them to your savings. If will help establish a savings history and boost your savings
Find the right account. Remember you can get better returns over a mid-long term period of time with non-banking financial institutions but must balance risk against return - and you may not get a positive return.
Share returns historically outperform other investment types over time but are volatile and may have large establishment fees. If you have time before you buy, it's an option worth considering
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This information may be regarded as general advice. That is, your personal objectives, needs or financial situations were not taken into account when preparing this information. Accordingly, you should consider the appropriateness of any general advice we have given you, having regard to your own objectives, financial situation and needs before acting on it. Where the information relates to a particular financial product, you should obtain and consider the relevant product disclosure statement before making any decision to purchase that financial product. This document, including all tax and super calculations, has been prepared using legislation in place as at 1 July 2017.
Source of article: https://www.yourmortgage.com.au/home-loan-guide/double-your-deposit-in-half-the-time/77846/
Source of image: http://www.readersdigest.co.uk/money/property/7-ways-save-money-deposit