Tips to beat the overwhelm
There’s no denying it, Sydney is an expensive market to buy property in. According to Nerida Conisbee from realestate.com.au, the median price for property in Sydney is $815,000. And when you’re paying Sydney rental prices, the thought of saving a 20% deposit can be daunting. Of course, you could always use a smaller deposit with some lenders lending as much as 95%. However, this will mean having to pay lenders mortgage insurance (or LMI) which could mean tens of thousands of dollars on top of your mortgage.
Don’t despair though Sydney. There are various strategies/changes you can make to increase your savings. Here are 7 ways you can save for a house deposit in Sydney.
A barefoot approach to investing
Get down to your local bookshop and purchase The Barefoot Investor. He has a no-nonsense approach to getting back in control of your finances including saving up a six-figure house deposit in 20-months. This book is full of everyday Aussies – single people, young families, empty nesters, retirees – who’ve applied simple steps and achieved life-changing results.
Negotiate. Don’t be complacent.
Sometimes as human beings, we like to stick to what’s familiar. Sometimes the thought of changing things up can be overwhelming and feel like a lot of hard work. However, in reality, continuously changing and negotiating with your utility providers can work in your favour. Keep looking for deals in the market and approach your utility and service providers. If they can’t match the offer, move on.
Be energy conscious
Think like your parents/grandparents/great-grandparents. We’ve become a throw-away society whereas they survived the war eras (or just after). The times where you saved every penny, had 1 or 2 baths a week and only switched the lights on when you were in the room. Now, we’re not proposing you go to that extreme, but making a conscious effort to switch things off when they’re not in use (by the wall, not just the standby switch) could really help to reduce your energy use.
Get in the zone
Yes, it can feel daunting but in reality, it’s probably not as scary as you might think. You’ve got to get your head down and in the words of Nike, just do it. By making it your focus, making sacrifices where you need to, and following a savings strategy it can be done. Which leads us nicely into our next point…
Get over your FOMO
Ahhh the ever-present FOMO, or fear of missing out. It can put a dampener on any strict savings strategy and in the age of social media, it can be harder to ignore. But ignore it you must. If saving for your new home is your focus then stick to the plan. Think nights out, impromptu breakfasts, takeaways, lunches, wasted gym memberships, and holidays. All these things are wonderful but when you’re saving for a house, they’re not conducive to your savings plan.
Get creative, find your side hustle
A side hustle is an American term meaning, making some extra cash. If you focus on putting every extra bit of money you earn straight into savings, you’ll be able to reach your house deposit sooner. Great news, but how do you find out what your side hustle can be?
Think about the available time you have, your skills, and expertise. If you’re a killer organizer why not try Virtual PA work? If you already work in the Creative Industries can you use your creative skills? What about dog sitting, housesitting, even babysitting! Sites like Airtasker.com and upwork.com are great places to start.
Be savvy and maximise your savings
Find out about the Government initiatives to help Australians get on the property ladder. Schemes such as The First Home Super Saver Scheme or First-home buyers grant. Look for the highest interest/lowest fees savings accounts. Basically, do your research and work out how you can get your money working as hard as possible for you.