Buying off the plan allows you to purchase a new property before it exists, providing you with the ability of only paying a 10% deposit and nothing else until the property is built and ready to settle.
One of the notable benefits of buying off the plan is “buying more time”. During the construction phase you can continue saving additional money that could be used to contribute a larger property deposit, new furniture or anything else that’s important to you.
Check out our article that discussed ‘off the plan buys more time’
Many get stuck with getting the first 10% property deposit. Here are some ways to save for your property deposit.
- Shop efficiently – Look at ways to reduce your general grocery bills. If that is buying in bulk, looking for discounts or shopping once a fortnight, look for what works for you and helps you save more money.
- Create a second source of income – Shall that be a second job, open discussions with your employer etc. Saving more money for a deposit doesn’t have to be all about reducing your expenses.
- Move back in with your parents – This may not be your first preference, but the savings costs are very rewarding. It will likely motivate you to save more than you think you can..
- Make a budget and stick to it – Establishing a budget that includes your cost of living and entertainment needs will make you more accountable to save.
- Save more to begin with – Try to save more than what your budget may show. You may find this very beneficial in escalating your savings deposit. This may be by reducing your entertainment needs.
- Find a better bank account – Many interest bearing accounts offer low fees and/or higher than average interest rates. Perhaps do some homework and compare your current savings account to others in the marketplace. These will help your savings grow.
- Sell some stuff – “One person’s trash is another one’s treasure”. Jokes aside, if you have accumulated assets that you aren’t using effectively, perhaps re-prioritise by selling unused items to add to your property deposit faster.
- Manage your debts – If you have some personal debts, look at eliminating them as quickly as possible. Not only does this improve your borrowing capacity, it will also reduce your expenses and therefore increase your property deposit.
Some of these ways to save for a property deposit may be harder than you think. Consequently we suggest you seek some financial planning advice. They can help you improve your cash flow. See our article on the power of an annual financial review.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more please contact us. We welcome the opportunity to assist you.
February 2019
