How to save up for a house deposit

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By Chris Carlaw

I know that one of the most publicised issues for not only young Brisbaneites but also Australia wide is the difficulty of home ownership. It is daunting, but at some stage, young people will have to start thinking of the thought of buying property.

Whether you delay it because you would rather travel, or you would like to spend your money on clothes and or a fast car, it is inevitable that you will come to the same cross road.  How do I actually save a house deposit? How is it possible? It’s too difficult!

Before I go into the difficulty of saving for a home deposit, can I explain that it’s actually not that difficult at all? Can I play devil’s advocate here are explain how I believe saving money for young people should be a piece of cake?

Here’s my thought processes and theory behind how we can smash the theory that Generation Y cannot save for a house deposit.

We have all in one way or another at this stage of our lives sacrificed something to gain something. In University, we sacrificed good food to have a good time. Can’t we simply go back to our University days where all we ate was Maggie noodles and tomato sauce on bread to save a few bob? We did this for a few beers at the University bar, why can’t we sacrifice like this for the dream of your own house?

I’m not suggesting you live off one or two food groups for the time it takes you to save up a tidy sum nor malnourish yourself. However there is a certain resolve and determination here we can tap into.

What about that time where we had to save for our first car? That certainly wasn’t a small sum.

So I’ll answer the title of this Blog. You save up for a house deposit by tapping into your previous experience with managing your money. Make it fun.

It’s annoying to have a wallet or purse full of change so why not buy a piggy bank and put your spare change into it? This is just one idea that we can implement into our everyday lives.

Think about what you spend your money on a daily basis or on the weekends. After all, it just doesn’t go up in a puff of smoke. Putting 10% of your income into a high interest account automatically is the best way to save. You don’t know it’s gone.

I personally didn’t save a cent at University. The money I received from my part time job was spent on music gear and CDs, going to gigs and on beer.  It’s OK to have fun, but as I have said, the home ownership is inevitable whether it is your focus at 18, 23 or 28. In 2 years or 5 years if you plan on doing this, the same principles apply. You have to sacrifice to gain something in return.

It’s a funny saying but everyone wishes they ‘had their time again’ for something they didn’t do. If I had my time again, I wish I had an article like this to kickstart some financial habits so I could put up my hand and say that I was one of those against the grain.

Are you trying to save up for a house? A car? A new guitar? Tell us what you’re doing to save those pennies!

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2 Responses to “How to save up for a house deposit”

  1. Stuart McMillen Says:

    The best way to go about it is to set up an automatic bank transfer so that money is put into a high interest account/ managed fund before you even have the chance to spend it.

    By doing this I’ve managed to fool myself into thinking my weekly income is about $250 less than it really is…and in the meantime my savings are secretly growing in a separate account behind the scenes.

    I’d highly recommend the book “Getting it Together” by Noel Whittaker, which is specifically written for people aged between late teens – early thirties. The book is over 15 years old (has been reprinted a few times over the years), but is still rich with advice and should be easy to pick up second-hand.

  2. benben78 Says:

    My fiancee and I are in the same boat. Late 20’s, early 30’s and wish we had our time over again.

    But we can’t. So the only thing we can do is save. We’re opening a joint account that is just for our savings towards a home/loan. We will have automatic transfers from our pay at about $100 a week so together that will be $10,000 a year at the minimum. Add things like tax returns, piggy banks and voluntary deposits, we hope to make $15,000.

    I think that’s a decent start. Depending on how we go, maybe we could handle $150 per week.

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