With the average home price higher than ever, saving all of the home’s large deposits can be a challenge.
With the national average price of properties listed on Trade Me hitting an all-time high of $ 800,000, it has never been more intimidating for first-time buyers to step up on the housing ladder.
One of the biggest hurdles to overcome is saving for that very large deposit. With most lenders requiring a down payment of 20% of the overall property value, the road to homeownership these days is long, but ultimately rewarding.
“It’s important that your savings plan is implemented from the start of your journey,” says Glen Arvidson, Product Manager – Property at Trade Me.
“With a property selling faster (average 27 days) and higher national prices, that magical 20% savings figure doesn’t just get you up the ladder, it also offers more security and options, ”he adds.
To help you get started with your savings strategy, follow some of these tips from the experts at Trade Me Property and watch this repository grow.
First of all, you need to do a quick but thorough audit of your finances.
Look at: how much you earn versus what you spend; how much you save on each paycheck; ways to reduce your expenses and potential ways to increase your income.
Establish a budget
Use Trade Me Property for free Property Analysis Tool to get an idea of the prices in the suburb (s) where you want to buy. You can then calculate roughly what you will need for a deposit and estimate how long it will take you to hold it.
Moving in with the family
It’s not for everyone, but getting home can mean you save a lot of money in a relatively short period of time, and mom or dad will likely charge a price below market and even offer a meal. free or laundry service, which means stealing the co-op for the second (and permanent) time will come quickly.
Hustle for extra income
A second income will help you save big, fast.
What your extra gig will look like will depend on your skills and schedule, but you might be looking to: be a mystery shopper; small jobs like mowing the lawn or dog walking; or drive anything from people to pizza.
Reduce your expenses
Do you really need that morning coffee, weekly take out, or a Netflix membership?
All of these little expenses quickly start to add up each month and if you really want to save for a security deposit, some sacrifices are required.
Be a wise buyer
The grocery store takes a large chunk of your paycheck, so when you go to the supermarket, follow a few golden rules: plan your meals in advance; make a shopping list; avoid more expensive branded products and buy wholesale.
If that old guitar or sewing machine is no longer a source of joy, consider selling it on Trade Me.
Not only will you make money easily, but you’ll have less to lug around in boxes when it comes time to move.
Cut the credit card
Credit cards are the natural enemy of savings.
If you’re the type who falls for the temptation to “put it on the plastic,” a simple but effective remedy involves a pair of scissors and a trash can.
Grow your savings
It can pay off – literally – to examine your savings account and see if there are better options. Ideally, you are looking for something where your money will earn a high interest rate, with the lowest possible fees, or no fees at all.
The best way to save all your hard earned money is to end up spending it. Start your search on Trade Me Property, New Zealand’s favorite real estate site.