SAVINGS TIPS TO GROW YOUR DEPOSIT

Reception • September 22, 2021

TIPS AND HABITS TO GROW YOUR HOME LOAN DEPOSIT AND STRENGTHEN YOUR APPLICATION.

One of the first things that comes to mind when thinking of purchasing our first home is the deposit. Here are some tips and habits that can help you both grow your deposit and strengthen your home loan application when the time comes.

TIPS AND HABITS

Our spending habits have the power to super-charge us toward our home ownership goal, or sabotage it (you can read about how our spending habits affect loan applications here ). Below are some habits that can help boost your savings:




1. AUTOMATE


If you set an automatic transfer of your savings as soon as your pay arrives, you will hardly miss it! (But if you don’t, you might feel you can hardly live without it.)



2. BUDGET FOR FUN


Do you have an outing or special occasion coming up? You don’t have to say no, just set a realistic budget for yourself (and keep to it).



3. CELEBRATE


Breaking down your larger target into smaller milestones makes the task feel more manageable and provides opportunities to celebrate your progress! (This will also help you stay positively motivated to save when you have to say no to spending.)



4. DITCH THE DELIVERY SERVICE


Covid may have us splurging less on great Melbourne coffee, however food delivery services have boomed. Save by ordering direct from the store, or change it up by finding a great recipe online and giving that a go instead.

"Beware of little expenses. The smallest leak can sink a great ship"


Benjamin Franklin

5. EVALUATE SUBSCRIPTIONS


Regularly check and monitor what you’re using, and what you’re paying for. Don’t pay for what you don’t use (or keep what you feel you can do without).



6. FREE CASH


Used wisely, membership and credit cards that offer cash back can put noticeable money back in your pocket. Note, no rewards warrant over-spending, and it’s important to pay credit card balances monthly.



7. GET CONNECTED


Regularly connect with people who can help guide and motivate you toward your goal. Having a team in your corner can increase your chances of success.

"Find a group of people who challenged and inspire you, spend a lot of time with them, and it will changed your life forever"


Amy Pohler

8. HIDE YOUR SAVINGS


Consider a quality savings account that is completely separate from your regular bank accounts – potentially with a different financial institution.



9. INSPIRE YOURSELF


Know what makes you tick and tap into that as a way of keeping yourself inspired and motivated. This may be through a vision board, a goal tracker, regular affirmations, visiting the area you wish to purchase in, etc.



10. JUST GET STARTED!


Regardless of where you are, the best and most powerful way to achieve your goal is to start.

"Find a group of people who challenged and inspire you, spend a lot of time with them, and it will changed your life forever"


Amy Pohler

GETTING STARTED


HAVE A TARGET.


One of the fundamental steps to saving your deposit is to have a target. Things to consider when establishing your savings target include:


  • Your current financial position
  • Your borrowing power
  • How much you want to spend


Once you have identified your target, put it in writing along with your end goal – the more detailed and specific you can be, the better!1 If you’re not sure how to work out an appropriate target, we’re happy to help.

"You can't hit a target you cannot see, and you cannot see a target you don't have."


Amy Pohler

KNOW WHERE YOUR MONEY IS GOING.


If you’re not already intimately familiar with where your money goes on a regular basis, it’s time for a date with your bank statements. Reviewing your past spending is eye-opening, and the first step to helping you take control of where it goes in the future – an essential part of maintaining any savings plan.



HAVE A PLAN (AND STICK TO IT).


Once you’ve identified your target, your position and your spending habits (to date) you have what you need to make a plan – we could call this a budget – to make sure our expenses are met, and our savings can grow.

"If you think you're not ready, it's always good to reach out to have plan in a place. You will be suprised where you actually are. Plus you might get some tips to motivate you!"


Yvonne, Future Finance Group Mortgage Broker

Along the way things might not always go according to plan, don’t be disheartened. Always keep your eye on the prize and get back towards your savings path if you stray.

Disclaimer: This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply. © 2021

4 Tips For Finding That Perfect High Yield Property

By Kola Dev • March 19, 2025
Any property guru worth their salt will tell you that a dream property investment has nothing to do with a prestigious address or sleek amenities. The ultimate goal, is to find that perfect “high yield” property that will give you maximum returns for as little input as possible. Yield refers to the amount of cash a property produces as a percentage of its value and is calculated by the rental income you are receiving compared to the purchase price. There’s a lot more that goes into the calculations, which I’m happy to run you through, but to give you an idea on what to look for, I’ve put together some simple tips. 1. Do your research. There are plenty of stats out there that will give you the median rental yield for each suburb. This is a great place to start! 2. Look for dual income properties such as a house with a granny flat. You can potentially have two streams of rent coming in, meaning the chance for a higher rental yield significantly increases. 3. Have you thought about looking rurally? Country towns offer some great properties at a low price and because the cost of living is low, the rental yields tend to be higher. 4. Always think forward. Be on the lookout for up-and-coming areas and ask yourself if they’ll still be flourishing in five years time. At the end of the day, you need to be realistic. Just because a property has a high yield doesn’t mean it’s going to be a great investment. As a mortgage broker, I can talk you through your options for investment loans so you can see what your monthly outgoings might look like. Please call our team on (03)8657 8664 or email reception@futurefinancegroup.com.au to arrange an appointment.

7 Quick Ways to Upgrade Your Home

By Kola Dev • March 19, 2025
The continuing boom in property prices has tempted many homeowners to invest in renovations to maximise the value and then put their home straight on to the market. There’s no doubt you stand a better chance of enjoying a great return on your investment if you modernise your home. Properties that enjoy a mix of the traditional and the contemporary are in big demand among today’s buyers and nothing ticks the boxes more than a brand new kitchen or bathroom. Two increasingly popular features at the moment are a dedicated home office and a design that connects the indoors with a garden or entertaining area. But renovation projects of this size can become expensive. If your budget doesn’t allow for large-scale upgrades, there are plenty of ways to enhance the value of your home at little cost. Here’s a seven-point guide to upgrade your home. 1. Break out the brushes It’s amazing how a fresh coat of paint will improve a property. Don’t focus only on the walls but attend to the skirting boards, ceilings and architraves. Select neutral colours as these make rooms feel bigger. 2. Go green Small-scale improvements to your gardens work wonders. Focus on the front yard as this creates an all-important first impression. 3. That’s entertainment If your property lacks an area to entertain, this is a great low-cost project to enhance your property’s desirability. Consider adding a deck or a barbeque area. 4. Floor ’em A mixture of different floor types can make a home feel bitsy while a home with consistent flooring creates a great sense of flow. Replacing the floor can be a painful project but you’ll be amazed how much bigger your home feels. 5. Say it with storage You can never have too much storage. A bedroom without built-in robes is just asking for clothes on the floor. Think about storage in bedrooms, bathrooms, kitchen and laundry and looks at ways to create clever storage solutions in nooks and under the stairs. 6. Kitchen upgrades If yours is a little tired, don’t worry – you don’t have to rip it out and spend big dollars. Consider replacing only the doors, drawers and handles. You’ll achieve a transformation at the lowest possible cost and it will feel like new. 7. Unbeatable bathroom Like the kitchen, this can be an expensive renovation. You can avoid replacing tiles by using a professional company to spray-paint them. This treatment can also be applied to sinks, baths and showers. New tapware and shower screens complete the refresh for a fraction of the cost of ripping and replacing. Please call our team on (03)8657 8664 or email reception@futurefinancegroup.com.au to arrange an appointment. *This article is provided for general information only and does not take into account the specific needs, objectives or circumstances of the reader. Before acting on any information, you should consider whether it is appropriate for your personal circumstances, carry out your own research and seek professional advice.

7 Tips for Organising Your Finances Before You Buy A Home

By Kola Dev • March 13, 2025
There are many tips for buying a property, but there’s one essential element that no one can avoid - getting your finances in great shape before you start. Knowing what you can afford is a critical element of finding your first home or the next one that takes you higher up the property ladder. The most successful buyers begin their search with their finances in order and a pre-approval letter from their bank or lender. They know their budget and tailor their efforts accordingly. There’s no greater waste of time than visiting properties that are beyond your price range. Using a mortgage broker can help you shortcut the hours of research through various banking products and good brokers have detailed market knowledge and can offer an array of products. We can suggest the loans most suitable to your circumstances and assist you with paperwork, and review your credit history. We can also help you understand any grants or tax exemptions from state and federal governments that you may be eligible for. Below are a few tips for securing the finance that will help you find your dream home. 1. Clarify your finances If you’re a homeowner, you’ll need to obtain a valuation on your current property and provide proof of current earnings. A first-time buyer will ideally have 10% of the purchase price as a deposit to get the best interest rate and conditions for their first loan but the more the better. Money for legal fees, property inspections and taxes need to be set aside, too. Make sure your tax returns are up to date to prove your earnings. It will make life easier. 2. Low barrier to entry You can obtain a conventional loan with as little as 5% of its total as your deposit. Some government-backed loans do not require a deposit. 3. It pays to save The more you save, the less you borrow. And that means lower your monthly repayments for you over the term of the loan. 4. Go for a grant First-home buyers should research the current grants from various levels of government that are designed to encourage them into the market. 5. Credit crunch You’ll need a good credit history to be attractive to lenders. Check yours out by using companies such as Experian and Equifax. If your track record is not the best, we can discuss ways to address this. If errors appear in your credit history, dispute them immediately. 6. Find the right loan You can save thousands of dollars by choosing the right mortgage product for your situation. It pays to shop around and make a note of not just the interest rate but the fees that come with it and other services that may be offered. As your mortgage broker, we can guide you through this process. 7. Be pre-approved A written undertaking from your lender will help you focus on what you can afford, as well as signal to a prospective seller and their agent that you’re not kicking tyres. Watch out for lenders who will only “pre-qualify” you, as this represents only an estimate of what you can afford and does not offer any guarantees of intention to lend. Please call our team on (03)8657 8664 or email reception@futurefinancegroup.com.au to arrange an appointment.
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