population increases, the demand for houses and property subsequently increases. When demand is high and supply is low, the prices rocket to sky high prices, making it almost unaffordable for many.
Australia is one of the top countries with the highest GDP per capita and the one of the 10 most expensive countries, costlier than many of the world’s most well-established and developed areas. With a population of about 24.4 million as of October 2016, it has a density of 2.8 people per square kilometer – this is actually a low value given the size of the country. As the 6th largest country in the world, Australia isn’t completely occupied.
For first home buyers, it can be daunting to look at the Return on Property Investment market and the high prices, especially in this day and age. Saving for a deposit can be very hard work, especially if you (like many others) have a lot of payments to make such as car insurance, petrol, electricity bills, etc. But it is a good way to get into the habit of saving money specifically for loan repayments. It also shows lenders that you’re more than capable of managing your finances. If you are someone that struggles with savings, here are some tips to help you get started:
- Create a budget and stick to it as much as possible. The best way to save is to pay yourself first by putting your savings into a separate account as soon as you get paid. This way, you won’t be as tempted to spend it on things like clothes, shoes – impulse buys and the like.
- Restrain yourself and cut back on unnecessary expenses. This can include memberships you don’t use, new clothes, bottled water or buying coffee on the daily. Be strict with yourself, the more you are committed into saving for your dream home, the closer you can reach that goal.
- If you have any debt, it is best to pay it off as soon as possible. Work out how much debt you have and how you plan on paying it off. You could try paying off the debt with the highest interest rate and work your way down the list, or you may like to consolidate your debt to save on interest and fees.
- Just because you are strict on your savings, it doesn’t mean you have to sacrifice your lifestyle. Factor in your everyday costs and try to minimise them as much as possible. However with this said, you can still pay your bills and expenses while still enjoying yourself by treating yourself every once in a while.