How I quickly saved a house deposit in one year
OLIVIA McGahey knuckled down and saved a house deposit in 12 months. These are her secrets to success.
SPEECH pathologist Olivia McGahey knuckled down in the past year to get a decent deposit together for her first home.
This involved moving back in with her parents and setting out a plan to tuck away as much money as possible.
“I saved as much as I could while working full-time to get to my goal within 12 months,” she said.
“I almost saved a 20 per cent deposit, so I made sure every week I budgeted.
“I was able to save about $550 to $600 a week and I cut back on non-necessities while also trying to have a life as well.”
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Ms McGahey purchased a two-bedroom unit in the Gold Coast suburb of Kirra.
New independent research compiled for lender State Custodians has found that for those trying to save up a first home deposit, about 45 per cent do it by saving their wages, up from 39 per cent in 2017.
And fewer first-time buyers have relied on getting a helping hand — just 15 per cent said they would receive some money given to them by a family or friend.
This compared to about 23 per cent in 2017.
State Custodians’ general manager Joanna Pretty said many hopeful first-home buyers were standing on their own two feet and no longer relied on getting handouts to fatten their deposit.
“There is a push towards people who want to get in there and do it themselves,” she said.
“Banks will always consider when you apply for a loan whether you can cope with an interest rate movement in terms of servicing the loan.
“Understand what it takes to get a loan.”
Debts such as credit cards and personal loans are usually on a lender’s watchlist when they receive a mortgage application. This could impact a person’s ability to successfully get a loan.
Realestate.com.au head of home loans Andrew Russell said having a solid savings pattern could help first-time buyers secure a competitive loan once they were ready to buy.
“The lenders can see a track record of being able to manage their expenses against their income,” he said.
“Have a clear savings plan and goal and then work up to that on a monthly basis and then shorter intervals, challenge yourself and see what you can cut out.
“If you can cut down on the smashed avocado and three coffees a day then it only gets you to your savings goal quicker.”
Originally published as How I quickly saved a house deposit in one year