# How did you save for your property deposit?



## Tyler Durden (19 June 2011)

Just thought it'd be interesting to see the different ways people here used to save up their deposit for a property. The options I can see are:

- high interest savings account
- term deposits
- shares

Interested to see the responses, thanks


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## danago (19 June 2011)

Saving up for a deposit is exactly what i am doing as we speak  I still have a few more years of university before graduating, after which i am planning on putting down a deposit. 

At the moment most of my money is in a normal high interest savings account, however i have recently opened up a first home savers account with CBA, into which i am depositing $5500 each year to receive the maximum government co-contribution. I do have a little bit of money in shares, but an insignificant amount really.


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## ck13488 (19 June 2011)

1. living at home
2. setup a recurring transfer the day you get paid to Ubanl or similar high interest account
3. take advantage of FHSA $935 co-contribution
4. not wasting money on drinking!


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## VSntchr (19 June 2011)

Compounding. Doesn't really matter what vehicle it is through, so long as you understand the concept and then choose the area you are most competent/comfortable with. For many this will be online saving accounts. For me it is shares + a few random investments that pop up from time to time.
The younger you can start the better, compounding takes quite a few years to start providing fruits - I am about halfway towards seeing some nice benefits 

Living at home helps, sharing expenses whenever possible. Not buying crap that you dont need..

and if you want to spend money on drinking, spend it before you go out - not buying $12 drinks in the club!


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## TabJockey (19 June 2011)

I like the idea of buying yield spikes in corporate bonds. Only the ones that are not going to go bust, like big 4 banks for example.


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## SuperGlue (19 June 2011)

Godsend from the heaven above..

Thanking you God.


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## ROE (19 June 2011)

Some 15 years back
I live at home
I bought shares, when i found a place I want i sell off all my shares for 25% deposit

Then paid off the place so i can be debt free, all done and dusted 8 years later
Back again for few years in the market now...
GFC, earthquake, market melt down, all good stuff to buy thing cheap just like when house yield for 7% and people dont want to know about it


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## Smurf1976 (19 June 2011)

Lived at home. Worked long hours. Put every cent I could into either shares or bank deposits.


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## Tysonboss1 (20 June 2011)

Tyler Durden said:


> Just thought it'd be interesting to see the different ways people here used to save up their deposit for a property. The options I can see are:
> 
> - high interest savings account
> - term deposits
> ...




Combination of cash and shares


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## Sir Osisofliver (22 June 2011)

I bought my first house at 18 years of age...with help from my old man who was guarantor.

From age 14 worked my ass off doing all kinds of ****ty jobs during the holidays. When I left high school I spent three months working 18 hour days 6 days a week. Saved every cent I earned during that time and pulled enough together for a 15% deposit.

Freaking gouged the seller.  Sold it  18 months later for a $45,000 profit. (respectable in those days)

Cheers

Sir O


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## Julia (22 June 2011)

Sir Osisofliver said:


> I bought my first house at 18 years of age...with help from my old man who was guarantor.
> 
> From age 14 worked my ass off doing all kinds of ****ty jobs during the holidays. When I left high school I spent three months working 18 hour days 6 days a week. Saved every cent I earned during that time and pulled enough together for a 15% deposit.
> 
> ...




A copy of this post could well fit into the current discussion on the contributions to Super thread.  i.e. it reinforces that EFFORT and determination are required if one is going to be financially successful.


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## againsthegrain (22 June 2011)

ahh super it should at last be allowed to use super as part of a deposit on your first house. Such a waste having it sit there for a lifetime until you can touch it...

Apart from that 
1. save from job
2. shares
3. bank interest
4. side businesses and business opportunities that arise

There is always cash to be made at the right place time price just have to be there, not as part of your main income but something on top of your savings. Even if you make extra 10k from other incomes then your day job over 10 years you will accumulate 100k


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## sptrawler (22 June 2011)

Moved my wife and two kids 2 and 3 yr old, to the N/W of W.A, rented an asbestos and corrogated iron home, saved on electricity by not having aircon. 
Banked 50% of my wage untill we had enough to buy a weatherboard and tile home to be removed from a block in Perth and restumped on a block I puchased.
Spent two years fixing it up and made 100% profit. Never looked back


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## cutz (22 June 2011)

Tyler Durden said:


> Just thought it'd be interesting to see the different ways people here used to save up their deposit for a property. The options I can see are:
> 
> - high interest savings account
> - term deposits
> ...




A tried and tested method, pumping the overtime. A little bit of luck on the stockmarket also helped.

Before the current property bubble, just before the Tech Wreck, 50% down for inner city wasn't a huge effort.


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## ENP (22 June 2011)

Bank deposits for me. 

Number one priority is to protect my capital, given I have a roughly two year time frame until I intend to purchase some property.


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## maffu (30 June 2011)

danago said:


> Saving up for a deposit is exactly what i am doing as we speak  I still have a few more years of university before graduating, after which i am planning on putting down a deposit.
> 
> At the moment most of my money is in a normal high interest savings account, however i have recently opened up a first home savers account with CBA, into which i am depositing $5500 each year to receive the maximum government co-contribution. I do have a little bit of money in shares, but an insignificant amount really.




Myself and my partner just opened our First Home Savings Accounts.
Putting the maximum 5,500 each in for 5 years will have us at about 70k-75k - tax.
The government contributes 18%, and its a high interest account with no fees and low tax.
Its fine for us as we won't be able to buy within 5 years as I finish uni, and she finishes her apprenticeship.
Affordability is another issue though. A 75k deposit is barely enough for a 1 bedroom unit in Sydney 

I also have 20k in the share market, and will aim to keep topping that up each year as a high risk way to save.


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## pixel (30 June 2011)

sptrawler said:


> Moved my wife and two kids 2 and 3 yr old, to the N/W of W.A, rented an asbestos and corrogated iron home, saved on electricity by not having aircon.
> Banked 50% of my wage untill we had enough to buy a weatherboard and tile home to be removed from a block in Perth and restumped on a block I puchased.
> Spent two years fixing it up and made 100% profit. Never looked back



 Ahh - the good old days, when people used to start with a reality check "What can we afford?" instead of falling for the advertisements "You're worth it..."

We moved to the Country, bought an old 2-bedroom fibro home that cost us a little less than my first year's salary. OK, so the company wanted me there and offered a low-interest 100% mortgage, which we took in full even though we had some savings. Put our own money into high-yield term deposits, and when I was offered a better job 4 years later, I could go to the staff office asking "How much do I owe you? Here's the cheque."

We too made lots of renovations and improvements, most of it done ourselves on weekends. When we finally moved elsewhere and put the house on the market, we netted 200% profit, tax-free.


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## tech/a (30 June 2011)

I realised early on that wages weren't going to cut the mortgage cycle for me.

So my savings and first debt were to get started in business.My thinking was and still is-- that I could increase my earning capacity far quicker than a boss would for me.
That way I would have more disposable income for things like s house.
6 years later bought my first home.

Still self employed and still buying houses.

By the way my education level was only year 12
So academia was not my strong point.


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## james0909 (13 July 2011)

Great post! Very topical for the times we live in.


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## cynic (14 July 2011)

I saved like crazy whilst living with the parents. Term deposits were offering between 14 - 16 % in those days. 

During the winter of 1987 I had to be assertive when a well-meaning relative tried to persuade me to put my money into a mismanaged investment fund based upon the recommendations of a financial supplanter. I assured this relative that there would be a sizeable stockmarket crash within the next 12 months and that it would probably be sooner rather than later. I wasn't actually believed until it happened. Even then certain people chose to have selective amnesia (the financial supplanter etc.).

To cut a long story short, I managed to purchase a small weatherboard house, in a not so good street, within a quite good suburb, the following year. Although this was probably my worst ever real estate purchase (timing and location were a bit off), it was a significant and invaluable step in my journey to independence (both personal and financial).


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