Buying while renting? Here’s how

Budget

You may think all your extra cash is being soaked up by your rental payments. Take a closer look at your incoming cash and expenses to find out if this is actually the case.

Where can you save some extra dollars each week? Every little bit counts when you’re saving for a house deposit, so try taking a fresh approach to your budget and be disciplined with your savings.

• Power in numbers: Another way of buying a property
• How to find flexibility in your home loan
• How to get a home loan when you’re self-employed
• Renting: Why it isn’t the end of the world

While it’s never too early or late to start saving, the first stop on your house-buying journey is paying off any existing debt. Clearing credit card or loan debts will make it easier to forge ahead with your savings.

Sacrifice to save

It’s easy to cut a few corners here and there. Simple steps to save money could see your deposit grow by hundreds each month.

Start with the basics. Take a shopping list with you when you head to the supermarket to help avoid random purchases. Bring homemade lunches to work and cut back on expensive lunches and coffees.

Be bill-wise. Pay bills on time and you’ll be surprised by how much you can save by avoiding unnecessary late fees. Also, check you’re not paying top dollar for your utility charges. Comparison websites make it easy to find cheaper deals for utility bills – just be sure to check the fine print.

Do your research

Take a good look at the advantages and disadvantages of renting and buying. On the one hand, renting means you never pay council rates, stamp duty or legal fees, not to mention thousands in interest rates. On the other hand, buying your own place is an ongoing investment that will free you from landlords and regular property inspections.

As you get closer to your goal of saving a healthy house deposit, it pays to do your home loan homework. ME home loans don’t cost the earth and provide flexibility when you need it.

The ME Basic Home Loan and ME Flexible Home Loan have no application or account-keeping fees. Best of all, both home loans offer interest rates consistently lower than the big four banks.

It can be done

Rising property prices make entering the housing market a daunting prospect. But you can make the great Australian dream your reality. Just remember: thousands have already achieved it.

You may also be entitled to first homebuyer entitlements. Each state and territory offers first home owner grants to give buyers a leg-up in the property market. Eligibility conditions apply, so check with your government.

This content was sponsored by ME. Comparison Rate based on a loan of $150,000 for a term of 25 years. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Terms, conditions, fees and charges apply. Applications are subject to credit approval. For more information, go to mebank.com.au or click the logo below: