Raising a deposit for your first home

By Phillip Tarrant 30 November 1999 | 1 minute read

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.


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.

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

About the author

Phillip Tarrant

Phillip Tarrant

Phillip Tarrant is executive editor – Real Estate at Momentum Media. He is also an investor with a large property portfolio.

He leads the content strategy and corporate growth for a range of market and business intelligence platforms at Momentum Media, including Smart Property Investment – the authoritative voice for Australia’s property investment community.

As head of the Smart Property Investment Podcast Network, he also steers the largest network of property podcasts in Australia, which collectively generates nearly 2 million downloads every year.

There are over 2.6 million investment properties in Australia, with over 2.1 million Australians (or around 8 per cent of all Australians) owning one or more investment properties. A vibrant and critical sector for... Read more

Raising a deposit for your first home
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