There’s a lot of chatter about the property market at the moment. With interest rates at record lows and the investor frenzy starting to ease, first home buyers are back in the game. The problem for most first time buyers is not whether they can afford the repayments, the major hurdle to homeownership is saving the deposit. Unless you’ve got a way to live rent-free, saving a large chunk of change in a short time can be daunting. We’ve got five tips to get you in your own home sooner.

Track Your Spending

Keeping your eyes on the prize takes sacrifice, but it doesn’t necessarily have to feel like punishment. Turning your cents into dollars is mostly about putting a strategy in place and sticking to it. It all starts with a budget. If spreadsheets aren’t your vibe, apps like pocketbook or TrackMySpend can help you create a budget and keep tabs on your spending. You need to know exactly where your money’s going, before you know how you can save smarter.

Cut The...

Next to budgets, the hardest part of a savings plan is working out what you can cut out. When you put pen to paper and track your spending, you’ll be amazed at how much money you’re actually wasting. Incidental luxuries like the weekend paper, that second daily cuppa or a sneaky 4pm brownie can add up to thousands of dollars each year. Before you cut out all life’s little luxuries, talk to a lender to find out how much you actually need to save. You might just be able to save your cake and eat it too.

Save Smarter

Not all savings accounts help you save. In fact, some accounts eat into your savings by charging account fees. If you’ve got your sights set on homeownership, look for an account that offers you no fees and bonus interest. A decent savings account like the BankVic Bonus Saver will give you access to a higher interest rate when you deposit at least $100 each month and make no withdrawals. It might not seem like a priority, but if you’re getting a return on your cash, then you’re not doing the heavy lifting on your own.

Declutter Your Way to Cash

If you take a look around your house, chances are you’re holding onto unwanted items you can turn into cash. If you’re thinking no-one’s going to want to buy your old phone or camera, take a look through eBay and see how many people are buying and selling them. From old clothes to CD’s, your unwanted items are worth something to someone, so be ruthless and turn your spring clean into cold hard cash.

Deal With Old Debts

Saving can be really tricky if you’ve got an old debt lingering in the background. Credit cards are the main culprit, and with high interest rates, they’re a costly culprit at that. Before you think about saving a deposit, you’ll want to start by consolidating and paying off your credit card and personal loans. While you’re not technically saving for a deposit, you are reducing the amount of interest you’re paying and by clearing the debt, increasing the amount you can potentially borrow and save going forward