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clip_image002Building a deposit for a home takes discipline and hard work. Every little bit helps though, and with some short term sacrifices and effective lifestyle changes, building a deposit is achievable for most working Australians.

Tips for growing an adequate deposit include:

  • Existing Debt – before saving can begin, and to increase borrowing power, it’s important to minimise or completely do away with credit facilities like credit cards or personal loans. These kinds of debt can inhibit any serious savings plan
  • Goal – Set a budget goal. The size of a deposit required depends on the value of the price range of the property being sort. Being realistic at this initial stage is imperative.
  • Budget – working out a budget can start by looking at monthly bank statements, they show where the money is going and where spending could be pruned.
  • Bank Account – open a high interest savings account or term deposit (put a withdrawal restriction on that account in case of temptation)
  • Government Assistance – research eligibility for any grants and bonuses available.

The deposit is only one piece of the purchasing puzzle. Other costs to consider include inspection costs, solicitors/conveyance fees, stamp duty, government charges and bank fees. Saving a sufficient deposit can seem out of reach to many. However, with a realistic plan and some discipline it is not out of reach for most.

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