Buying a house is a great accomplishment; you gain a place to call home where you can create a life full of memories in.
It is important to develop a plan for saving so that you make the journey to homeownership as smooth as possible. Consider the following:
Understanding the hidden costs
Buying a house that costs $500,000 for example, isn’t as simple as saving up a 10 per cent deposit of $50,000. There are so many more expenses pertaining to purchasing a home, such as stamp duty, transfer registration, insurance, interest, costs of work done to the house after purchase, moving costs and many more.
When saving for a house, it is pivotal to look beyond simply budgeting for a deposit and consider how you will afford to make mortgage repayments on top of other living expenses.
Creating a solid budget
Once you have considered all the costs of buying a property, you can accurately calculate how to budget for the upcoming expenses. Speaking to your financial advisor or a mortgage broker is a great investment towards reaching your homeownership goals. When developing your budget, consider the various ways you can save money, such as:
– Researching different options for your phone to get a better deal
– Cancelling subscriptions or sharing and splitting costs with someone else (i.e., Netflix)
– Making coffee at home instead of buying one out
– Writing a shopping list for groceries and seeking out the best deals
– Cancelling memberships you don’t use (i.e., gym membership)