6 Reasons why you cannot save a property deposit
The main factor that stops many of us purchasing that property is being able to save up a deposit in the first place. For some, this is an impossible task, especially as property prices in Australia’s capital cities, particularly Sydney are going up and up and up.
However, there are various reasons as to why people cannot save a deposit for a property, and the good news is that if you really want to get on the property ladder there are solutions to get you there and plenty of ways to save.
So what are the popular reasons as to why you cannot save up a property deposit?
Here are six of the top reasons I have come across as to why you can’t save a deposit for a property and some solutions to help you get there faster.
6 Reasons why you cannot save a property deposit
1) Not earning enough
Our income is one of the main drivers to get us to our deposit goals. Without an income, we simply cannot afford a property (unless you have inherited a sum of money, or have money tied up elsewhere). However, if you feel that your income is too low to afford a property, then you need to either reduce the budget to a property that is more financially affordable, or find a way to increase your income. It might mean moving back home or finding a second job. If you want that property enough, you will find a way and consider all your options.
2) No financial plan or budget
Have you made a financial plan and budget and do you even know how much you spend a month? One of the first things you need is a budget and work out your monthly income and your outgoings. Is there any way that you can reduce your expenditure such as eating out less and making your lunch for work? Maybe you could holiday locally this year rather than overseas. Having a budget that you can stick to each week will help you to progress towards your deposit goal.
3) Deposit too large
Perhaps the reason you cannot save a property deposit is because your deposit is unobtainable. Many people overstretch their deposit as they want to buy their dream house in their dream area and simply cannot save that amount of money in a specific time period.
You therefore need to relook at your finances and come up with a realistic expectation of a property purchase price and look at more affordable suburbs. If you haven’t already done so then seeing a Mortgage Broker should be at the top of your to do lists.
Remember, that the first property you buy does not have to be your dream property and it is very unlikely that it will be. You should use this property to get you on the property ladder first.
4) No financial goal
Having a financial goal in mind will make reaching that budget much easier. If you don’t know what you are working towards then you are lacking motivation to keep to the budget. Just like everything in life, if you have a goal on the table, then if you really want it then you will achieve it.
5) No partner
Going it alone can be extremely difficult compared with buying a property with a partner. It means that you have to save the full deposit yourself which can often be difficult and a lengthy process. Would your parents help or do you have a friend or partner who is also trying to save up a deposit? Perhaps you can join forces in order to get on the property ladder? If this isn’t an option, then make sure that your deposit is lower to make it easier to reach.
Today we live in a culture where we like to have the latest gadgets and gizmos and everything you buy can be put so easily on credit card. Everywhere we go there is advertising telling us to sign up to the latest deal, buy the latest phone or try the newest skincare product. We live in a world where spending money makes us happy, but spending all this excess money will not get us to our deposit goal any sooner.
We therefore need to learn to shut out the advertising, and only buy the essentials. However, it is important to remember that we can treat ourselves every now and again, as shutting out everything can de-motivate us.
To learn more about saving up a property deposit and other things you can do to reach your property sooner, why not get in touch with the friendly iBuyNew team. Our Property Consultants have years of experience working in the property industry and are here to help you every step of the way.
Give iBuyNew a call today to discover more and how you get your savings working for you now. Call us on 1300 123 463.
Alex has previously worked as a Mortgage Broker and Financial Planner and enjoys helping his clients with their purchase of off the plan property in Sydney, Melbourne and Brisbane.
For more information, contact Alex by email, firstname.lastname@example.org, or call 1300 123 463.
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