How To Save Up To Your First Investment Property

Buying a home is one of the biggest investments that you can make in your life. Yet, with house prices fluctuating, you are bound to be in for a ride. However, with some planning and strict prioritisation, it is possible to come up with that 20% deposit that is needed – without putting yourself through a struggle. I’ve been looking for houses for sale in Leederville and there are so many nice ones! It has really made me excited to start saving. Below I give the best tips that have worked for me. 

Time to get serious about saving

Sometimes, when people finish their studies or take a break from work, they tend to go all out and book an expensive holiday. It can be a wonderful experience, but sometimes it means you spend all the money you have spent years saving. If this is you – you will need to start saving up for a house from scratch. It might be good to talk to a property manager in Perth (or wherever you live) for advice on how to reach your desired deposit. 

That’s when it’s time to start learning more about your savings and spending habits. When the time comes that you need to start getting serious about saving, consider switching over to a savings account that has a lower interest rate than your every-day account. 

If you are finding it hard to get serious about saving, then find the dream house you would love to buy, walk through it. That’s a great way to get motivated as it provides a clear goal for your savings. Find out exactly how much deposit you need and start saving. This can help put things into perspective and help you to become serious and more proactive about saving your dollars.

The easiest and fastest way of saving money is to cut costs where you can. It isn’t easy, especially if you have lived a quite fashionable and comfortable lifestyle until this point. You will need to sacrifice things like $4-morning coffees and there will be a lot of compromises in terms of where you spend your money. Consider a shared living situation to cut the cost of food, rent and bills. Instead of putting the heater on, put some extra clothes on or snuggle up with a blanket. Doing these things might not be for everyone but you need to think about how much you want your new house.

Some people don’t want to cut these pleasures out completely and you don’t have to, but you need to limit them if you’re going to be effective in your savings. If you buy your lunch every day then think about taking it from home every day but the last day you buy it. You are not missing out on buying your lunch, but you are just cutting down. You will find that you will enjoy the takeaway food more often and have something to look forward to at the end of the week.

Getting on top of your debts

There is no way you can start long-term savings account if you are dealing with debts that you need to keep making ongoing payments for. You can consolidate your debts, so you just have one payment and lower interest rates. The less debt you have to pay, the more likely you are to be approved when it comes to your home loan application.

Setting up a budget

Sit down with a paper and calculator and write down everything that you need to for pay each week, fortnight or month (whatever is more relevant). Look at things that you can cut the cost of. Are you buying top range groceries? Buy cheaper alternatives and consider buying in bulk as this will help you save money.

Seek the advice from a financial planner who can help you set a budget and look into your finances and see where changes and plans can be made.

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