How to Afford Your Home Deposit

It is increasingly becoming difficult for would-be homeowners to save enough money for their home deposit. Often, the reason behind this is that people have to save this money on top of their basic expenses such as food, gas and electricity, even the cost of your car. Inflation can be a factor here as well, since the value of a person's salary diminishes as prices go up.

Since you are reading this article, chances are that you find yourself in a similar situation. How will you be able to afford your home deposit without sacrificing paying your bills and utilities? We offer you some tips in the list below, starting with...

  1. Selling off things you don't need. Look around your house. There's a good chance that you have valuable things lying around that you don't need. It could be an old mobile phone, a laptop, a guitar, or piece of furniture. Whatever these items are, and no matter how much they cost individually, the money you get from selling these would eventually add up. Should you sell it on eBay, at a garage sale, or somewhere? It's up to you. What matters is that you get enough funds for your home deposit.
  2. Making extra income. Got a knack for writing, painting, or creating websites? If you're still offering your talent for free since "it's just a hobby", it's probably time that you make money out of it. If you're good at baking, for example, start sending out samples to your friends and colleagues. Then package it with an accompanying card with your contact details if they're interested in buying from you in the future.
  3. Asking for a raise. This might not be the easiest thing to do, but if you've been working for a company long enough, then it could be a good idea to ask for a salary increase. Of course, you won't just jump at your boss and tell him or her you need more money. Rather, ask for a one-on-one appointment, state your current situation (i.e. you want to buy a house), and then tell your boss that a raise would be helpful to you and your family at this stage.

All it takes are guts and a little creativity to help you come up with the funds for your home deposit. Thus, consider selling things you no longer use, make money from your hobby, or ask for a raise.

Need more assistance with your loan? Here at Rate Detective, we can help you find the best deal based on your lifestyle and budget. Contact us today!

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Published on October 10-th, 2012 in Home Loans
Damon Rasheed is the CEO of Rate Detective, an Australian financial service comparison sites specialising in Life Insurance, Income Protection Insurance and home loans. Damon holds a Master's Degree in Economics from the University of Melbourne and has been involved in many start-up internet businesses.
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