How Coupon Savings Can Lead to Property Ownership

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    If you’ve decided that this is the year to start saving for a home, then you’re not alone. With COVID-19 rocking the property market, there has never been a better time than right now to start saving for a deposit and investing in a home.

    For those who are tired of sharing a house, living with irritating roommates, or simply needing to deal with a landlord who is less than friendly, then property ownership is the best option for you — though it isn’t exactly easy to buy a home.

    Many of us do struggle to put away a little money each week or month for our house deposit, or find it near impossible to find some disposable income in our budgets for a house deposit at all — however, there are a few tricks to saving for a house deposit.

    All that said, let’s have a look at how coupon savings can lead to property ownership and what you need to know to save for a home a lot faster.

    Understanding How Much You’ll Need for a Deposit

    Before we get into coupon savings for a house, we’ll take a quick look at how much money you’ll need to put into a house deposit depending on where you live.

    In the past, the minimum deposit amount for a home was around 10 to 20 percent, and that was the absolute bare minimum. However, with property prices continuing to climb, banks have become a little more lenient with their home loan requirements, and you can get away with around a 5 percent deposit nowadays.

    With that in mind, to reduce your payments and get in control of your mortgage faster, we do suggest making a deposit of around 20 percent, and in doing so, you’ll be able to waive Lenders Mortgage Insurance too. This will save you a little more money.

    To gauge a bit more about what you’ll be expected to pay for a home in your state, we’ve listed the entry-level homes below and their average cost.

    •   Northern Territory — $279,000
    •   Queensland — $331,000
    •   New South Wales — $593,000
    •   Victoria — $407,000
    •   South Australia — $275,000
    •   Western Australia — $282,000
    •   Tasmania — $270,000

    With those costs above in mind, you’ll be able to work out the typical deposit amount by finding 20 percent of these prices. You can find more info here about your deposit amount and how it will affect your loan repayment amounts, which is important to keep in mind when deciding on how much to put down for a home. If you deposit too little, your repayments might be too high to comfortably purchase your everyday essentials.

    Coupon Savings for Property Ownership

    When it comes to saving for a home, we know that the process can seem rather daunting and a drawn-out activity that can take forever. Though, with the right budget framework in place, you can truly make light work of saving for a house deposit.

    If you work to structure your lifestyle around reducing unnecessary expenses and directing all disposable income, or at least a vast majority of it, to a savings account, you’ll be more than able to save the required amount for a home in your location.

    That’s where coupon savings come in.

    Reducing your Cost of Everyday Items

    As you’ll agree, cutting expenses is one of the fastest ways to save for a deposit, and with couponing being a near-effortless way to do this, it could be your saving grace when it comes to getting enough out of your budget to save for a home.

    If you’re looking at websites or coupon magazines and finding that you could shave off up to 5 percent or 10 percent off your weekly shop of $150 you’ll be effectively saving $15 per week by changing just about nothing at all.

    Over the course of a year, you’ll be seeing more than $700 added to your budget for a house over the course of the year.

    Double Down on Your Coupon Savings

    One big tip we have for you is to actively move the money you’ve saved from your coupons or general discounted items to a high-interest savings account or term-deposit account.

    For example, if you’re saving between $15 and $50 a week on groceries from using your coupons, move this dollar amount into a savings or investment account and make the value work to grow on its own.

    Of course, as you’ll agree, saving is fantastic, though if all the money you’re saving is simply sitting in a low-interest or zero-interest holding account, you’re missing out on returns of 1 percent or more per year.

    Automate Savings and Your Budget

    A final parting tip we’ll leave you with is the automation of your savings when couponing, which will save you time and allow you to save for something with no work at all.

    Whether it’s an app or built-in service with your bank, work to switch over to automated saving every time you purchase something when couponing.

    Because you’ll have less of an expense thanks to your coupon savings, you’ll likely have leftover change in your bank account — these automated savings accounts round up these amounts and move them to a savings account for you.

    The Takeaway

    All of the above said, it isn’t too hard to see that by using coupons to save on your daily expenses that you’re creating avenues to save for a house deposit.

    Although the process of property ownership might seem daunting and near-impossible, we’re confident in saying that with a solid plan in place and a commitment to saving money, you’ll be on the right track in no time. 

     

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