The vast majority of first time investors in New South Wales say they would cut back on general day to day spending in order to afford an investment property.
According to Mortgage Choice’s latest First Time Investor survey, 70.2 per cent of NSW respondents said one of the first things they would do is cut back on their spending in order to afford an investment property, while a further 57.3 per cent indicated they would “eat out less” and 24.2 per cent said they would cut back on “alcohol related spending”.
There are lots of things potential buyers can do to reduce their daily spending. In fact establishing good savings habits can be as simple as taking a back to the basics approach.
When it comes to saving money, potential property investors should look to implement some tried and tested methods that can help them to get ahead without having to make extreme changes to their current way of life.
In the first instance, it pays to build an achievable budget. Budgeting monthly or in accordance with the length of your pay period will allow you to amend your budget fairly quickly if an unexpected expense rears its ugly head.
Once investors have a manageable budget in place, there are a few other techniques they can implement to help them achieve their savings goal sooner rather than later.
Become a VIP member – Sign up to be a VIP member at your regular shopping spots
Savings enforcer – Ask someone to help you oversee your savings plan.
Home cooked meals – Rather than buying your lunch each weekday, why not prepare your own meals.
Waste not, want not – Eliminate some of the little luxuries that you can do without.
Ask for discounts – Have you been a member of your local gym for some time? If so, it may pay to give them a call and see if they can reduce your weekly fee for being a loyal customer. Of course, your gym isn’t the only place you can ask for discounts, try asking for a discount wherever you feel comfortable. After all, you don’t ask, you don’t get.
If you would like learn more about your home loan or financial advice options, call us today on (02) 95863100.