Tips for first homebuyers to save for a deposit

THE major barrier to home ownershp for first homebuyers has long been the ability to save enough for a deposit.

But it is possible, particularly with a clear plan for success.

As a first homebuyer, you may be eligible to receive a grant or stamp duty concession to help with your property purchase.

Each state and territory has its own scheme and the offers, qualification criteria and processes for applying vary accordingly.

RAMS Home Loan Centre Tasmania principal Tony Leggett firmly believes in the “great Australian dream” of owning a home.

“At RAMS, we help Australians realise this dream through an extensive range of home loans and flexible options, making it possible for people to own their home,” Mr Leggett said.

“Once the decision is made to buy a home, the next thing people think about is saving for a deposit and, for some, this can be daunting.

“First homebuyers have told us some of the key challenges to saving for a home deposit are paying high rents, having unexpected expenses and the general cost of living.

“However, to maximise your rate of return and improve purchasing power, opening a High Interest Savings Account could help you reach your savings goals sooner.”

Here are some other helpful tips to get you started:

Set a budget. Put simply, to save you have to spend less than you earn. Tools like the RAMS Home Loan Budget Planner can help to track your income and spending habits. A budget will enable you to understand how you spend your money and target where to cut down. It’s important to be realistic with your budget planning. With a sensible budget, your savings will gradually build.

Cut down on expenses. This doesn’t have to mean no fun. Simple changes to your spending (and lifestyle) habits can make a big difference. For example, take your lunch to work or have a nice night in, you can save hundreds of dollars a year. Take a look at the RAMS Easy Savings Calculator for other great suggestions on cutting down expenses.

Keep savings separate. Reduce the temptation to dip into your savings by opening a separate account – preferably a high interest savings account.

There are many other ways to realise the dream of home ownership sooner.

Whether it’s putting spare change in a jar at the end of each day or selling things you no longer need, it all makes a difference to your savings.

Take time to research the State Government grants and initiatives that are available and, of course, decide which home loan is right for your situation.

For further information and advice, contact Tony Leggett by phoning 6228 2033 or visit the RAMS Home Loans Centre at 106 New Town Road, New Town.