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Raising a deposit for your first home

30 NOV 1999 • By Phillip Tarrant • 2 min read • Finance

Spiralling rents plus the overall increased cost of living has made saving for a deposit as difficult as ever for some budding homeowners. However through setting a good household budget plus following a few tried and tested tips, you can grow your deposit from an anthill into a healthy-sized mound in no time.

deposit home

 

1. Consolidate all credit cards, store cards or other high interest debt into one loan and pay this off as quickly as possible. This will help make repayments easier to track as well as minimise interest repayments.

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2. Understand exactly where you spend your money. Try to keep a diary for a week or so to record all your purchases, from your daily coffee through to major commitments. Once you identify where you’re spending you’ll be able to make the most effective cut backs.

3. Create a realistic budget that factors in all major financial commitments, such as school fees, your telephone and entertainment, while leaving a buffer for incidental purchases. Just remember, if your budget is too restrictive it’s going to be impossible to stick to; so set achievable goals and reward yourself when you meet them.

 
 

4. Avoid using credit cards wherever possible; if you need a credit card, just stick to one.

5. Live with your parents. While it might seem like like a hassle, you can save considerably on rent – and think of all those home cooked dinners!

WHERE TO FIND MORE INFORMATION There are a number of government incentives available to first home owners to help them enter the market, including the first home owner grant and stamp duty concessions, which are administered on a state-by-state basis. For further information on terms and conditions in your state visit your relevant government revenue office.

NSW – www.osr.nsw.gov.au VIC – www.sro.vic.gov.au ACT – www.revenue.act.gov.au QLD – www.osr.qld.gov.au WA – www.dtf.wa.gov.au SA – www.revenuesa.sa.gov.au NT – www.nt.gov.au/ntt/revenue TAS – www.treasury.tas.gov.au

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RELATED TERMS

Deposit
A deposit is a portion of funds used as security for a lease or the purchase of goods and services or funds transfer to another account.
Phillip Tarrant

Phillip Tarrant

AUTHOR

Phillip Tarrant is one of Australia’s leading property commentators, with more than a decade at the forefront of conversations shaping the nation’s property investment market.

As the long-time host of the Smart Property Investment Show and a regular commentator across property, finance and business, Phillip has interviewed thousands of investors, economists, advisers, brokers, agents and industry leaders, giving him a unique perspective on the trends, policies and market forces influencing Australian property.

Beyond property commentary in the media, Phillip is an active property investor himself, with first-hand experience building and managing a diversified property portfolio across multiple markets and cycles. His insights combines this practical investor perspective with deep exposure to the broader property and financial services ecosystem.

Phillip is also CEO and co-founder of Managed, an Australian property payments and technology platform transforming the way property managers, landlords and tenants manage rental payments and property transactions.

Through his writing, podcasts and industry engagements, Phillip focuses on cutting through market noise, challenging conventional thinking and helping investors make more informed, strategic decisions. His commentary regularly explores property markets, lending, taxation, regulation, investment strategy and the changing dynamics of Australia’s housing sector.

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