Save your deposit in two years

Lifestyle adjustments could give you that extra cash for a house deposit

First-time home buyers are often daunted by the amount required for a deposit on a home loan.

But Paul Stevens, CEO of Just Property, says that a few temporary tweaks to their lifestyle and spending habits could get them a foot in the property door and, once they’ve purchased a property, they significantly reduce their long-term bond repayments.

Here are 10 things that you can do immediately to start saving for a deposit:

Saving R100 000 over two years gives you a R50 000 target per year.

Aim for R4 500 a month, Stevens advises, as some months you’ll come in a bit above, and some months a bit below.

It’s just for two years. The short-term sacrifices will be worth it.

1. Choose three little luxuries, and at the beginning of the month buy those. Everything else, compare prices and choose the cheapest.

Only buy specials or look at a different supermarket or wholesalers. “Some of our clients say that simply changing supermarkets has saved them R1 000 a month,” says Stevens.

2. Put your savings away at the beginning of the month. Aiming to save what’s left over is not as efficient. Put your savings into a call account.

3. Make your own lunches instead of buying takeaways.

4. Cars are depreciating assets. If you, as a couple, have two cars, sell one and buy a scooter instead, make do with just one vehicle, or exchange the most expensive vehicle for a cheaper one. We know, you love your car – but you’re going to LOVE owning your own home!

5. Get an updated insurance evaluation to save costs.

6. Sell unnecessary things in your home on second-hand sites.

7. Take a lower cellphone package instead of upgrading.

8. Create a second income stream by freelancing or getting another job.

9. Move to a smaller rental unit for two years and pay less rent. It’s only temporary.

10. Put any bonuses, gifts or commission into your savings account.

Look at where else you can cut your spending. – Just Property