{"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
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
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 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 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 <\/p>\n Being fiscally responsible will serve you now while you\u2019re trying to save and it will be absolutely indispensable when you\u2019re a homeowner.<\/p>\n As much as you can set up your budget to reflect what you will be paying once you\u2019ve purchased your investment property. The more financial discipline you practice now the easier it will be throughout your life.<\/p>\n No matter how long you invest there will always be something new to learn.<\/p>\n Adopt an attitude of openness to learning new things and you\u2019ll be amazed at what will happen.<\/p>\n However, don\u2019t listen to just anyone. Find people who have achieved the success you are seeking and ask them how they made it.<\/p>\n People love to share what they know, so take advantage of it and ask questions!<\/p>\n Reduce your outgoings and you\u2019ll instantly save money…without working longer hours.<\/p>\n Start with the non-essentials such as pay TV. Yes, you aren\u2019t required to pay for premium channels, so cut back.<\/p>\n There are other ways to get your entertainment, such as streaming videos or \u201clow tech\u201d activities such as a walk in the park!<\/p>\n Once you\u2019ve eliminated those bills that you don\u2019t need, try to find ways to reduce your essential bills.<\/p>\n If, for example, you can buy fewer minutes for your cell phone, then switch plans if you won\u2019t incur a large penalty. \u00a0<\/p>\n Find one or more individuals who would be willing to buy the investment property through a joint venture. Granted you\u2019ll split ownership, however part of something is always worth more than all of nothing!<\/p>\n It\u2019s not uncommon for mums and dads to help their kids get into a property – even if it\u2019s an investment property.<\/p>\n If they\u2019re willing, your parents can gift you some of your deposit, however remember that lenders want to see that you can save money so part of the deposit needs to come from your savings which have accumulated over a period of time – typically at least 3 months.<\/p>\n <\/p>\n <\/p>\n3. \u00a0 \u00a0Adopt a goal-oriented mindset\u00a0<\/h2>\n
4. \u00a0 \u00a0Save consistently<\/h2>\n
5. \u00a0 \u00a0 Sell and\/or reorganise<\/h2>\n
\n
6. \u00a0 \u00a0 Practice financial discipline<\/h2>\n
7. \u00a0 \u00a0 Nurture a love of learning<\/h2>\n
8. \u00a0 \u00a0Slash your bills<\/h2>\n
9. \u00a0 \u00a0 Get help<\/h2>\n
10. \u00a0 \u00a0Claim your inheritance early<\/h2>\n