{"id":4617,"date":"2016-11-30T03:35:49","date_gmt":"2016-11-29T16:35:49","guid":{"rendered":"http:\/\/www.trc-gorod.ru\/?p=4617"},"modified":"2020-05-25T11:22:05","modified_gmt":"2020-05-25T01:22:05","slug":"10-ways-save-deposit","status":"publish","type":"post","link":"https:\/\/trc-gorod.ru\/10-ways-save-deposit\/","title":{"rendered":"10 Ways to Save a Deposit"},"content":{"rendered":"

Getting a foot into the market is a tough step for anyone trying to buy an investment property. \u00a0\u00a0After bills, rent, groceries, petrol, insurance\u2026 there isn\u2019t a whole lot left for saving.<\/p>\n

For a $400,000 property you\u2019re going to need a minimum $40,000 deposit. For some people, that\u2019s their entire annual salary.
\nSo how can you save without having to live off a diet of baked beans on toast?<\/p>\n

It\u2019s actually surprisingly simple. Here are 10 smart tips for saving your investment property deposit.<\/p>\n

 <\/p>\n

1. \u00a0 Pay off your debt\u00a0\"pay<\/h2>\n

It sounds simple enough, but you\u2019d be surprised at the number of people with huge credit card debt, car loans, holiday loans, etc. This is all bad debt.<\/p>\n

While you may be happy just paying the minimums so that you can save money, that\u2019s actually a terrible idea.<\/p>\n

According to the Australian Securities and Investments Commission (ASIC) Australians carry an average of $4,300 per person in debt and if their rates are between 15 to 20 percent they\u2019re paying about $700 per year in interest charges.<\/p>\n

This means that if you have $4,400 debt on your credit card and make the minimum repayments each month, it would take you 31 years to pay it off!<\/p>\n

And the interest you\u2019d pay? \u00a0Nearly $15,000!<\/p>\n

However, in this scenario if you paid $216 per month your debt would be paid off in only 2 years and you\u2019d shave off nearly $10,000 of interest charges.<\/p>\n

Bottom line, you can\u2019t have a savings plan while you have debt. In fact, your ability to service an investment property with loads of unsecured debt is impaired as well.<\/p>\n

 <\/p>\n

2. \u00a0 Get a budget<\/h2>\n

You\u2019ve probably heard this a thousand times. So do you have a budget? A budget is the single most effective tool for saving money. You can use an excel spreadsheet which will cost you nothing \u2013 or you can invest in\u00a0accounting\/budgeting software.<\/p>\n

Once you\u2019re aware of how much money you\u2019re spending each month, you can see where you are overspending and areas you can cut back on.<\/p>\n

While a budget is important to have while saving for an investment property<\/strong>, it will become indispensable once you own that investment property.<\/p>\n

 <\/p>\n

3. \u00a0 \u00a0Adopt a goal-oriented mindset\u00a0\"Adopt<\/h2>\n

Do you know \u201cprecisely\u201d what you want? One fundamental attribute you\u2019ll find among the wealthy is goal setting.<\/p>\n

They know exactly what they want and they create a plan to achieve it – a plan that they relentlessly follow until it\u2019s completed.<\/p>\n

4. \u00a0 \u00a0Save consistently<\/h2>\n

Yes, I know I said you can\u2019t have a savings plan while you\u2019re in debt. This is to be done after you\u2019ve eliminated your debt.<\/p>\n

Automate your savings by having it taken out and put into an interest bearing account before you even see it by using pay withdrawals.<\/p>\n

You know\u2026\u201dout of sight, out of mind\u201d, right? The goal here is to \u201cforget it\u201d. Wipe the existence of your account out of your mind entirely and you\u2019ll be surprised how quickly your savings will add up.<\/p>\n

5. \u00a0 \u00a0 Sell and\/or reorganise<\/h2>\n