How To Buy A Sydney House Faster With These Saving Tips
Everybody knows that property in Sydney is expensive, and you need all the help you can get, so here are some tips to help you buy a Sydney house faster.
Saving the required deposit quickly may be a more realistic goal than you realize, if you’re willing to put in the effort to make it happen!
Of course, you may not be able to afford to buy a sprawling mansion in the Eastern Suburbs. On the other hand, a suitable older home that needs a little attention or an apartment may be within your range.
If you purchase a home with maximum deposit and put in the necessary improvements and repairs, you can always sell it for a profit later on.
Buy a Sydney house faster and see what happens….
You can save tens of thousands of dollars in mortgage interest by paying a big cash deposit for your home. You can see the benefit of this, but is this an option that’s right for you? Consider these benefits of saving a bigger deposit towards your house purchase:
Lower mortgage payments
How wonderful to know that you start day one with certainty and equity in your home, a buffer to protect you in the future. Consider also being able to save say $1,000 per month in mortgage interest that you can use for other obligations, expenses, or savings accounts.
Full profit is a reality
If the house already has equity in it and you decide to sell, you’ll be walking away with higher profit due to the equity you acquired through upgrades, renovations, and appreciation. Since the first few years of mortgage payments go mostly toward interest rather than principal, you’ll be left with little or no profit for your investment if you took out a low or no-deposit loan.
Greater financial freedom
Spend a few years with lower mortgage payments in your budget and you’ll discover financial options that wouldn’t be open to you if you were still paying off a larger mortgage.
- Spur-of-the-moment vacations or other luxuries might now become a reality. You could take an overseas trip, for example, or buy a new car with cash, or give your spouse the opportunity to stay home with the children full-time.
- In another scenario, you might continue to live within your means and save a considerable amount of money for early retirement. With lower monthly expenses over the next 10 to 20 years, the savings will be substantial.
How to Buy a Sydney House Faster – Saving For A Big Deposit
If you’re fortunate enough to have two incomes coming into your household, you can learn how to live on just one income and completely bank the other income into your savings. Doing this enables you to turn your dream to buy a Sydney house faster into a reality. Of course, you’ll need to trim your monthly expenses down to bare necessities to make this possible.
One option is to move in with relatives for a few years, in order to eliminate the expense of rent and utilities entirely. In some cases, parents or siblings are more than willing to welcome you into their homes, allowing them to spend more time with you while you save for a worthwhile financial goal.
If moving into your grandparent’s house doesn’t sound like such a good idea, employ these tips to help slim down your expenses and increase your savings:
- Rent out one or two bedrooms in your home to a young professional or responsible college student
- Use coupons to reduce your weekly grocery bill
- Take on a second job
- Sell your car, then use half of the proceeds to purchase an older vehicle outright and put the other half towards savings
- Move into a more sensible, smaller, or less expensive home
- Save your tax refunds over time
- Choose to send your children to public school rather than private
- Eliminate or reduce monthly expenses like cable TV and internet service
- Sell high-value collectibles
- Trade in your monthly mobile phone bill for a prepaid phone
- Shop at second-hand stores for clothing instead of retail stores
- Move to an area of town where renting is less expensive
- Visit tourist attractions in your own area and apply your yearly vacation fund towards your savings
Implementing some of these ideas might be a little difficult, but they’ll be worth it in the end. You will be able to buy a Sydney house faster than you could dream of!