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Saving Money for a deposit for House & Land Packages in Perth

Published:

February 17, 2017

When you are not on the property ladder, saving a deposit for a house and land package can seem like a daunting task. The key to success is to start saving as much as you can as soon as you can. Lenders are often cautious about lending to young, would-be home buyers, so the larger the deposit you can put down against your purchase, the broader your choice of mortgages is likely to be.

Take a long, hard look at your budget

If you are serious about saving money fast, chances are you will need to set aside a significant proportion of your monthly income. The best way to boost your savings is to keep track of your spending so that you can identify areas where you overspend and take action to curb your spending. This might mean restricting the amount you spend on activities, such as shopping and socialising.

Choose a savings account with care

When saving for house & land packages in Perth, you are going to need a savings account that allows you to regularly contribute to it. Regular savings accounts that enable you to put aside a set amount of money each month can help you to start a disciplined savings habit. However, many providers will fine you if you fail to meet your monthly savings targets.

Keep your savings safe

The key to saving for a deposit is to make the most of every dollar you save. With interest rates at record lows, you may be tempted to turn to stock market investments to try and achieve a higher rate of return. However, when you invest in the stock market, there is a risk your money will fall in value.

Review your savings regularly

Once you have started saving, it is important to review your savings account regularly to ensure you are getting the best return on your investment. Some providers offer attractive introductory rates that boost the earnings you make on your savings. However, these rates normally only last six to 12 months.

The price of house and land packages in Perth can vary significantly over a relatively short period of time. This means you could meet your savings goal, only to find that you still have not amassed enough to make a purchase. You will therefore need to keep your eye on the market and review your savings goal regularly.

Sources:

(Five savings account catches to watch out for, moneywise.co.uk)
(How to stick to a budget and save money, moneyadviceservice.org.uk)
(Mortgage deposit explained, which.co.uk)
(Saving for a home, moneysmart.gov.au)

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