For many, saving can be difficult. Luckily, Mortgage Choice has put together 5 tips that can help you save.
1. Set a limit
It's a great idea to develop a savings plan with your goal in mind. Set a time limit( say 6 months minimum) to work out your regular contributions that will help you achieve your goals.
2. Establish a realistic saving pattern
Create a budget that tracks your expenses and train yourself to think about where your money is going. Try to cut down on expenditures by using public transport instead of using taxis or perhaps even living with family to save on rent.
If you have a pre-approved loan and are still saving, save the difference between your rent/board (if possible) and the mortgage repayments you'll soon be committed to. This will help you get used to the reality of being as mortgage holder.
3. If possible, start with a lump sum
Saving is always easier if you have something to start with. You could achieve this by selling anything you don't need, perhaps making it a fun experience by holding a garage sale or auction with friends. Keep in mind that you will need to show some genuine savings accumulated over a period of at least 3 months.
4. Factor in additional costs
Remember it's not just the property you will save for. Consider additional costs such as a solicitor, valuer, removalist and service connections.
5. Use equity from other properties
Subsequent home or investment property buyers may be able to use equity from other properties towards their next purchase.
Alternatively, you could consolidate other loans with your new mortgage and lower your regular repayments. Keep in mind this strategy will stretch the total outstanding debts across your home loan term.
With all this in mind, give it a go and see if these tips help you to save. And remember, come in to Mortgage Choice Bowral so we can find the right loan for you.