Tips on saving for your home

It has been five years since Stu and I bought our first home but it feel as if it was only yesterday we were at the auction. I remember so clearly the moment Stu made the winning bid and the loud thud of the hammer as it went down to seal the deal. The exhilaration I felt, the shock, the realisation that, "Oh my goodness! We just bought a house (and are now seriously in debt)!"
from home
Five years on, I've never been more glad - we've made the house our own and with the addition of Frankie the dog and Alexander the naughty boy, it has really become a real family home. And I feel incredibly fortunate we were able to afford it at that time. With Sydney's house prices soaring in the last few years, saving for a home has never been more daunting.
to home
So today, I'd like to share a few tips to help home buyers get started saving towards their future home.

High interest savings account - High interest accounts will allow you to speed the saving process up considerably and all you have to do is keep putting money in there. Make it easy to put money into the account and incredibly difficult to withdraw it. This is to keep any impulse withdrawals from ruining your awesome interest rate for the month.

Know how much you want to spend - this will allow you to build a time frame for saving. If the price range you’re looking at is particularly expensive, you can start putting together the funds for a proper down payment. If the property you’re looking at is on the cheaper end of the spectrum, you should probably be looking to pay for as much of it as you can straight off the bat.

Budget accordingly - build yourself a workable budget that takes all of your current earnings into consideration. You should be able to break the budget down into money that needs to be set aside for essentials like bills, car registration, food, and any existing debt repayments, while also leaving a little bit for emergencies or a bit of leisure like a night out. Working out exactly what you need to spend on these things allows you to take whatever is left and put it to work in your savings account.

Stay on target - the hardest part about trying to save for a house is having that growing amount of money just sitting there calling to you. You really have to focus on your goal. The best thing you can do is forget that the account even exists. Set up a direct payment into the account from your pay every week and ignore it. This will hopefully prevent you from being tempted to dip into it!

And if you're lucky enough to be thinking about buying your second or even third home, why not turn your first home into rental properties in short term? To do so, you should be researching everything. The suburb the property is in, housing market fluctuations and pricing and real estate agents. Agents are the people you’ll be dealing with most when leasing, so knowing what they’re about is crucial. Use sites like http://www.localagentfinder.com.au to gather information on things like commissions and real estate agent letting fees to make sure you’re getting a good deal.

These are just a few of the things you can do to effectively save money for buying your family home. What are your favourite saving methods? Do share in the comments section below!

21 Responses to Tips on saving for your home

Lux Ganzon said...

I'm excited to purchase my own house soon. Thanks for these tips. I'll surely keep these in mind.

Pamela RG said...

So true. It really takes a lot of discipline to save and reach our goal of becoming a homeowner. These are valuable advise Trishie.

Rose said...

Beautiful house. Yes. Buying a house is a very big investment. Only become your asset once you settled the loans, debts otherwise it is a liability.

ANDYSTYLE said...

GREAT POST :)

http://sbr-fashion-fashion.blogspot.com/

pretty little things said...

Great tips dear

Enara Girl said...

You have a great home, you deserve it, I'm very happy for you. xoxo

CQUEK said...

beautiful home... thanks for the tips.

burntfeather said...

Sometimes I think owning our own place isn't achievable but then I think that's kind of a pessimistic way to view things. I like this idea of practical steps to get you closer to your goal and prevent just being idle and pessimistic!

Niken said...

your home looks so lovely and of course, homey. thank you for sharing the tips! house-buying process is such a tiring and stressing process.

Rowena @ rolala loves said...

Wow it's cool that you bought your home at an auction. We saved for years and bought our home when we got married. We were lucky we got in just before real estate prices in NYC really shot up.

Rowena @ rolala loves

Midnight Cowgirl said...

Wonderful advice! The high interest savings account is a smart idea.

Tina Bradley said...

Trishie, your home is lovely! Great tips! I remember the day we closed on our first home's loan. :) Fond memories. T. http://tickledpinkwoman.blogspot.com

My Garden Diaries said...

Such great tips and advice you have here buddy! You seriously need to do a house tour! Such a stunning space you have!!! Wishing you a great week with your crew! Nicole xoxo

libys11 said...

perfect timing to read this post as my bf and i are talking about getting a place this year!! :D
thanks for this post! really helpful!

Animated Confessions

Georgia Milton said...

Great tips really, thank you. I'm trying to save money for my first house and it's so hard with all these payments I have to make every month.

Floor polishing Greenwich

Ananka said...

Good tips. :-)

We are coming up to 2 years in July. Still needs a lot of work though! :-)

Arni @ Travel Gourmande said...

You have a stunning home. Great tips. I'm looking forward to having a place of our own one day.

Priscila Betancort said...

Amazing post!! Love all the pics.
Kisses from Spain.
Xoxo, P.

My Showroom



Priscila Betancort said...

Amazing post!! Love all the pics.
Kisses from Spain.
Xoxo, P.

My Showroom



Jane said...

Great tips Trishie! We were saving for a while for our downpayment but there were some major family emergencies which made us need to dip into our downpayment saving as well. We did continue to save but what really helped us was having a very informative and helpful realtor! She let us know about a program offered in our area where we were able to use money in our 401k to help with our downpayment. It was a popular way for people to buy their first home. She went over with us pros and cons and just pros and cons about other programs out there for first time homebuyers. So that made calculating what our monthly budget would be and also calculating exactly how much money we would need to actually purchase a home (closing costs, etc.) It was such a great experience for us. And we continue to make sure we have cushion money for house emergencies. It's been fine for us but we keep hearing of nightmarish episodes that some of our friends had to go through and it's scary!

trishie said...

@Jane sounds like you got an amazing realtor!