We’re Having Trouble Saving for a home - Any Suggestions?

Q. My wife & I are finding it very difficult to save for a deposit on a new home. Any suggestions?

Josie’s Answer - This is a very daunting task considering that most new borrowers need to save approximately 10% of the home value in order to get into their first home.

You should you think about opening a high interest savings account (see Rate City) and have a portion for your salary (at least 10-20%) automatically transferred into this account each month.

Also work out what your mortgage repayments would be worth and ensure you save the difference between what you pay in rent/board now – and what you will need to pay.

Until you know where you spend your money you are likely not to know how to save it, so do a budget and stick to it. You will be surprised how easy it is to find an extra $30-$50 per week once you put in writing where you are spending your hard earned cash. You may also qualify for the First Home Owners Grant.

Don’t forget that the above information is general in nature and not specific to your goals and objectives. It is recommended that you seek personal financial advice specific to your needs