The dream of homeownership is probably close to being a universal one in Australia. Many Australians start planning to buy their new home from a young age, but what about the growing family with changing requirements for bedrooms and living spaces? Planning and saving early on will see you realising your new home purchase more quickly.
Smart Saving Tips
Household and personal spending are the areas you need to take stock of. Cutting back on car costs, investigating the best electricity rates and reducing wastage around the house are some relatively straightforward things you can start doing now to save more.
Gas, electricity, water and telecommunications costs form a large portion of the typical household budget. You can cut back to save more by conserving usage, going green and monitoring your household usage to avoid going over the contract amount (for things like phone contracts).
Smart shopping can also help you go a long way in saving more money. Shopping around for the right utility service providers or for the right package can help you save hundreds or even thousands of dollars.
2. Food and Leisure
Food and leisure are areas where it’s often easy to splurge on non-essentials. If you eat out or have lots of takeaway meals, consider cutting back. Use a shopping list for buying groceries and avoid deviating from the list when you’re at the supermarket.
3. Replacing Major Items
This type of expense isn’t an ongoing, regular expense, but it usually entails a major outlay and so it’s worth planning for in any savings strategy. Things like dishwashers, fridges and other appliances can cost thousands to replace. If your appliances are outside their warranty period or very worn, you might want to account for the possibility that you’ll need to replace one or two appliances in the near future.
4. Car Costs
Commuting, car servicing, maintenance and car repayments are some of the common car costs for those who drive. You can cut back by driving less, by carpooling with others for your commute, or by downsizing or switching to just one vehicle for the household where possible.
Setting Up a Savings Account
Don’t forget to set up a dedicated savings account for your new savings goal. Open a high-interest savings account and make automatic deductions from your everyday transaction account on payday. This way, you’ll be less tempted to spend outside your budgeted amount.
Picking the Right Home Loan
It’s not too early to start looking for the right home loan. Home loans in Australia come with a range of features and options, so you could start speaking with lenders to determine how much you could borrow, the amount you’d need for your deposit and what your repayments will be.
Having these figures well in advance could assist you with your savings planning. You could even find a way to finance your new home without having to save as much as you previously thought you had to.
For example, if you’re keeping your existing home, you might be able to use your existing equity to fund your new, bigger home rather than having to save up the deposit.