You CAN save for a house while you rent

Article written by Sarah Thomson from Loan Market

If you’re like many Australians who currently rent but would one day like to own their own home, you’re not alone. Having to pay rent, utility bills and other expenses, whilst trying to save for a house deposit may seem unattainable, but with some discipline and commitment it can be done.

Work out a budget and save
Take the time to understand your spending habits and finances, and review your debts. If you have multiple credit cards or personal loans, you may want to consider consolidating them into one debt, or if possible, paying them off completely.

Create a budget and stick to it! Ultimately, how well you save comes down to how disciplined you’re willing to be. Once you’ve identified and accounted for living expenses you will be able to work out how much money you can put towards your savings.

Opening an account designated for the funds of a deposit can be a good motivator as you’ll be able to see your savings grow.

Minimise rent
There are different ways in which you can bring down how much rent you’re paying. Splitting the cost with a housemate, downgrading to a smaller place or moving to a lower-rent area are just a few options that could see you save those extra dollars.

Resist temptation
It’s far too easy, for many of us, to buy things we don’t need. For some it’s clothes, for others it’s gadgets, but that can be the difference between having a house deposit, sooner.

Learning discipline when it comes to spending can initially be challenging, but extremely rewarding in the long term. Next time you’re tempted to buy something that you ‘want’, remind yourself to keep focusing on the bigger picture- owning your own home.

There are other ways to help you save for a property, quicker. Talking to a mortgage broker can help you navigate through the different options available to you.