Buying a property, Your deposit

The larger the deposit you save for your property, the more choices you enjoy to buy the property you want; the greater your power to negotiate with lenders; and the more likely you are to be able to comfortably afford to repay your loan. A healthy deposit can also eliminate the extra cost of mortgage insurance.

So how do you save a deposit? It can be tough saving when you have to pay rent, so if you have the opportunity to live with parents or relatives, take advantage of this for as long as possible. Or rent cheaply. A few years of less than ideal accommodation when you are single or a childless couple could make a huge difference to your financial status and comfort when you have a family to support, and in retirement.

Whatever your income and accommodation costs, budgeting to save a healthy deposit for your first home is the first step towards financial prosperity.
List your expenses and mark those that cannot be reduced. Think about ways to cut those costs that are not fixed. Try recording all your spending for a few weeks, and then examine your records to determine where you can make savings without sacrificing lifestyle unacceptably.

Also, put your savings aside immediately you receive your income, preferably in a fixed deposit account where your funds are not easily accessible. And look for savings plans that pay higher interest rates and have low or no account fees. Online accounts may be attractive. Term deposits pay strong returns if you have $5,000 or more.