Tuesday, 11 July 2017

Budgeting Tips To Own Your Own Home Sooner...



*This post is brought to you in collaboration with HashChing.


Buying or refinancing a home in one of Australia's crowded capital cities such as in Sydney or Melbourne has become an issue, and for those like us scratching up a deposit to afford an abode or even trying to manage steep mortgages, the trend shows that the dream of home ownership is steadily rising out of the grasp of the average Australian.



In 2017, the median house price in Melbourne alone has risen above the $800,000 mark - many times greater than the average salary of struggling families and individuals who are striving to get a foot in the elusive housing market. This fact, combined with the sting of regular government cut-backs at both a state and federal level, plus increasing tax and utility costs being thrown our way, shows that the 'great Australian dream' is rapidly becoming just that - wishful thinking.


Despite this apparent depressing outlook for home buyers, there's never been a better time than now to save dollars with the goal of home ownership in your sights. Whether you are an individual, couple or a family, either first home buyers just starting out or already paying a mortgage, trimming your everyday costs, is your first plan of action for setting up a good savings system.


No matter where you are on your home buying journey, successful budgeting always starts with the small and simple things. Just cutting back on your regular take-out coffee, lunches at work and monitoring and reducing your impulse purchases which can rapidly add up over the weeks, months and years, can make a huge difference to your savings in the long term. Exercising self-control with spending in these smallest of ways can effectively make a difference of several hundred dollars, or even thousands, in your bank account each year.


Reduce your living expenses. No matter what your current living situation is, trimming costs off your food budget, utility costs and everyday living can help you save cash. If you're renting, this could mean finding a cheaper rental for the time being and banking the difference towards a deposit. Don't be afraid to shop around for deals from electricity providers too. Change supermarkets if your current one is not competitively priced or find the time to budget your weekly shop by spreading it across several stores for the best deals on items both big and small.


Reduce your credit expenses. Credit cards are useful on occasion as a back-up, however, relying on them to cover your spending on a regular basis can quickly lead to a cycle of overspending and debt which can be difficult to reign-in. Interest rates on credit cards are rarely user-friendly once you've overdone your budget. Unless you can curb your spending with credit and pay the debts off in a timely way each month, you'll need to re-think your relationship with the plastic. Your best plan of action where credit cards are concerned, is to pay these off in full each month to avoid the high interest rates being applied to any outstanding balance, and then either rarely use them, or consider cancelling the cards altogether if you can't manage them in this capacity.


Save! Save! Save! As you save for your home, shop around for great deals with secure financial institutions. A term deposit, for instance, is a wise choice for savers, where your money is locked in a higher interest earning account for a nominated period of time. Just keep rolling your funds over as they mature and adding your additional savings to see your account grow. Likewise, set up affordable automatic debits from your salary that go straight into your nominated savings account as soon as you are paid. This will ensure you will always have your savings growing seamlessly while you continue to work towards your goal of home ownership.


Shop around for home loan deals. There are so many options and considerations here and it helps to be wise about how you go about this. HashChing is an ideal place to start your search.
HashChing is an Australian online marketplace where you can browse for the best home loan deals and it's completely free to use for home buyers. HashChing connects you directly to verified mortgage brokers who can then negotiate a better rate from lenders on your behalf, ultimately saving you the groundwork, hassle and money.


Home loan rates on HashChing start from 3.59% p.a. and consumers can have a look at the home loan deals page to see what offers are available. Click here to access weekly home loan deals.


If you're already up to this stage in your quest to own a home, you can easily get in touch with one of the brokers at HashChing. Even if you're already mortgaged and comfortably settled in your own home, it's still wise to get in touch with a broker at HashChing and save big dollars over the life of your loan. HashChing can help you out at no cost too. You can contact an expert today by clicking here.





Are you saving for a home deposit? Are you a current home owner?





13 comments:

  1. Hit really is out of reach for many of us. Hope that changes soon!

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    Replies
    1. The situation is dire! Future generations will have a worse time again if things don't radically change.

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  2. Sound, sensible advice! The only thing I would add is don't use your credit card. At all. We have them for emergencies, but we never use them for day to day spending. I cannot tell you how much trouble that keeps us from! Our budget these days is loose, but functional. The first things we take care of are: mortgage, giving, savings and utilities/bills. We use the rest for discretionary lifestyle types of things, and the remainder at the end of the month gets rolled into extra savings. That money has some defined ear marks on it. It is very freeing to live well within one's means and seeing that little nest egg grow month by month. :o)

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  3. I wonder how my kids are ever going to be able to buy a house in Sydney!

    Ingrid
    http://www.faulousandfunlife.blogspot.com.au

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    Replies
    1. We too worry about this for our own children.

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  4. We already technically own our own home but its a townhouse and even with a property already, buying a 'real' house is going to be a struggle.

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    Replies
    1. You have a solid foundation with a townhouse at least. Not sure what the property situation is where you are. We are glad to be in our own home and managed to get in just before things went crazy here in Melbourne.

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  5. I couldn't agree more. Falling out of the credit card lifestyle is the best plan of action for savings. You sound as if you have a great system in place.

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  6. I am just about to do a big budget review and get quotes for all of our current insurances and expenses to see where we can save a few dollars each month. I've already started looking in to car insurance and just with that alone we are looking at being able to save over $100 a month by switching who we are with. So reviewing that every couple of years is also a great way to find some savings :)
    #teamIBOT

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  7. We have a credit card and use it for day to day stuff (because points!) but we pay it off at the end of every month. We review all our policies and service providers every couple of years to see where we can save some dollars too.

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  8. Paying off home loans fortnightly helps. I have a credit card after swearing off them for 10 years. We have it for points and emergencies. Sometimes it gets out of control so we get it paid off and start over again!

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    1. This comment has been removed by the author.

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