Top 7 Tips for Saving for a House While Renting
We all know that buying a home is expensive. That’s why many Australians rent first while saving for a house deposit. However, that can be challenging. Not only are you building your savings to purchase your home, but you’re also paying monthly rent, not to mention your daily expenses. But it can be done. Even small amounts you save can mean a lot and bring you closer to your goal of buying a property.
Check your financial situation. Whenever you plan to make a major purchase, it is essential to take a step back and review your finances and spending habits. If you have debts, review your credit files and see which ones can be consolidated or eliminated.
- Open a dedicated high interest savings account. One great way to keep track of your savings and make them work for you is to open an account that yields high interest. Monitor how much interest you’re earning on a monthly basis. Making deposits regularly will also give lenders the impression that you have good financial habits.
- Look for other sources of income. Nowadays, there are so many ways to earn extra cash. Make a quick search online and you’ll see various freelance jobs. Tap your skills and hobbies and see which can generate additional income.
- Lower expenses. Check areas where you can cut costs. Reduce your energy consumption by replacing your light bulbs with energy-efficient ones. As for water use, make it a habit to take quick showers.
- Consider renting a studio apartment. If you’re single then renting a studio apartment is suitable for you, but even couples can live in a studio while saving for a house deposit. Studios usually come with lower rent so this can help in building your savings.
- Utilise the building amenities. Skip gym memberships and use the gym in your building instead. The same goes for swimming - you can use the pool for your regular workouts.
- Look for a co-borrower. Of course, it helps to have someone who will share the pressure of saving for a house deposit. A family member, partner, or close friend can be your co-borrower. While it sounds easy, make sure to do your research as there are factors to take into account when purchasing a property with another person.