- It is a buyer’s market, prices are falling and many are finding it harder to sell
- Property agents tell us five of the most common reasons homes refuse to shift
It is not an easy time to be selling your home.
Little more than a year ago, sellers had the upper hand as the housing market was red hot and there were plenty of buyers competing for each available property – and bumping up the price in the process.
But higher mortgage rates, falling house prices and economic uncertainty mean that the power balance has shifted.
Buyers are taking a ‘wait and see’ approach, and sellers have to work harder to secure an offer at the price they want. Meanwhile, it seems gazundering is on the rise.
Others find their property remains on the market for a long time, and are faced with either cutting the price, or holding their nerve and risking their listing hanging around even longer.
According to experts, though, some sellers might not be putting their best foot forward. They say that there are common reasons some properties aren’t selling which can be relatively easily fixed.
We look at five things sellers might be getting wrong in the current market – and what they can do about it.
1. You don’t have a good estate agent
One of the most important factors when selling your home is to have the right agent in your corner.
The firm you choose should be working hard to get it seen by the right buyers – and if they aren’t, you can always take your business elsewhere.
Colby Short, co-founder of estate agent comparison website GetAgent, says: ‘There’s a whole host of reasons you may be struggling to sell your home but they often stem from one core factor and that’s your estate agent,’ he says.
‘The best approach is to research the best-performing agent in your area based on metrics like the average time to sell, the percentage of asking price achieved consistently and their customer satisfaction rating.’
Short warns against picking the agent who promises the highest price – or the lowest fee – as this can prove to be a false economy.
‘These are two big red flags as a good agent will rarely compromise on fee and won’t over-value simply to win your business,’ he says.
He adds that ‘fixed-fee’ agents who promise to sell a home for a set amount, rather than a percentage of the sale price, are sometimes best avoided.
‘The vast majority of these agents don’t actively work to progress your sale beyond you accepting an offer and this is actually the most vital part of the selling process,’ he says.
‘Particularly in current market conditions where uncertainty has grown, you need a good agent working day in, day out to ensure your sale is progressing right the way through to completion.’
Read our guide to the nine questions you should ask an estate agent before hiring them.
2. Your asking price is too high
According to agents, this is the number one reason people are struggling to sell their homes.
House prices have soared since the pandemic, with annual growth reaching up to 15 per cent at some points in 2021 and 2022.
That’s no longer the case, and the latest indexes show subdued growth or even price falls.
It’s commonplace for sellers to enter the market with an unrealistic price expectation to begin with
Experts say that home sellers need to adjust to this new reality if they want to sell.
Otherwise, they risk sitting on the market for a long time – which makes the property seem less attractive to buyers as they assume something must be wrong with it.
James Forrester, managing director of agent Barrows and Forrester, says: ‘There simply isn’t the same buyer feeding frenzy as there was a year ago.
‘It’s commonplace for sellers to enter the market with an unrealistic price expectation to begin with, and this can see their property sit on the market with little to no interest for weeks on end.
‘A property can hold incredible sentimental value and so it’s understandable that this can often fog our judgement.
‘However, today’s market is very different to that of 12 months ago and pricing in line with current market conditions is vital if you want to secure a sale.’
Tim Dansie, director of Jackson-Stops estate agents in Ipswich, adds that even if a buyer agrees to your ambitious price, it can all fall apart later on when they apply for a mortgage – potentially unravelling the whole chain.
‘One of the realities of a more balanced market is the need for buyers and sellers to find a middle ground on pricing,’ he says.
‘We’re clear with buyers when conducting valuations that over enthusiastic asking prices could lead to disappointment down the line.
‘Long chains are often reliant upon a number of mortgages being accepted and completions going through, which is where any overvalued pricing quickly becomes unravelled by lenders who use the true market values, risking the whole chain collapsing.
‘Accepting price adjustments of around 5-10 per cent from the outset can secure a buyer, expedite the sales process, and avoid last-minute negotiations.’
3. You didn’t spruce it up beforehand
With buyers in a position to be picky, it is more important than ever to present your home in the best possible light.
That means not only keeping the property clean and clutter-free, but also taking care of small DIY tasks that might be making it look a little rough around the edges.
Seemingly trivial jobs such as touching up chipped paintwork, getting the windows cleaned and weeding the driveway can all pay dividends.
‘You’d be shocked at how many sellers bring an unfit property to market and then scratch their heads when buyers are less than enthusiastic,’ says Von Grundherr.
‘You really need to showcase your home and any features it may have.
‘Clutter, mess, kids’ toys, pet hair, these are all things that can produce a negative opinion of your property and in the current market, you simply can’t afford to put buyers off.’
4. The photos aren’t good enough
Another problem can be the photos of your home online not being up to scratch.
Most buyers’ first encounter with your home will be on a jam-packed property listings website, and stand-out images can make the difference between a buyer booking a viewing or not.
Make sure they look professional and show all areas of the home, inside and out.
‘Presentation is key and this starts with your property photos.
‘If you’re marketing with a few smartphone snaps instead of professional photographs then you’re already at a disadvantage,’ says Von Grundherr.
If your home has been on the market for some time, it is a good idea to get a fresh set of images that reflect the current season. You can ask your estate agent to do this.
Looking at photos of a home with the sun shining and a leafy tree in the garden when it’s snowing outside is a dead giveaway that it has been hanging around for a while.
5. Potential buyers are put off by YOU
Finally, anyone struggling to sell their home needs to confront the uncomfortable possibility that it’s not the house that is the problem, but the owner.
If you are present for viewings, you want to come across as friendly, positive and helpful.
Moving home can be incredibly stressful, and you should show prospective buyers that you’re not going to be a thorn in their side.
Von Grundherr adds: ‘More often than not, you may be the problem.
‘The majority of the time a seller will be present during the viewing process, and you’d be surprised how often they can be cold, unwelcoming, short, or even rude.
‘You really need to turn on the charm and if you can’t, let your agent handle the viewing process completely.’
- A new home owner has taken to social media to share all the tips and tricks
- Liv Bamford, 24, posted a video with advice for first-time buyers
A new home owner has taken to social media to share all the tips and tricks they learned along the way, with the hope to make it easier for other first-time property hunters.
The 24-year-old warned that she’s ‘not an expert’ and viewers should ‘take any advice or information lightly and ‘do their own research.’
Though, her advice seems to have proved useful since the video has been seen by over 38,000 people.
From money advice to organisation, here are her best recommendations.
Set up a new email address
She told viewers ”The first thing I wish I’d done is made a new email account because oh my god, there’s so many emails, there’s so many different people to contact.
‘There’s life insurance stuff, home and contents insurance that you need to sort out.
‘All these different emails and when I tell you, they are getting lost it’s so hard.
I started flagging them, but there’s still things I forget to flag or things that I miss and I just wish I’d made a separate email for everything house-related, it would have made things so much easier.’
CC everyone into your emails
Off the back of the first piece of advice, she replied to a commenter who wrote ‘Also cc everyone into emails i.e. Solicitors and estate agents so you’re all on the same page and you have to insure the property the moment you exchange.’
Liv added ‘I completely agree. I wish I’d cc’ed people into everything.
‘Luckily we chose a broker and they pretty much sorted everything out and I think behind the scenes there’s been a lot of contact between all the different people.
‘But you don’t know that and you’re very much kept in the dark and it can be the same for everyone, so it is a good job to CC everyone into everything so everyone knows what’s going on – I wish we’d done that.’
Know the help to buy ISA rules
Help-to-buy ISA’s are a government scheme designed to help first-time buyers save for a mortgage deposit to purchase a home.
The government promise to top up any contributions you make by 25%, up to the contribution limit of £12,000.
However, Liv wishes she’d been aware of this lesser-known rule:
‘I wish I had known that help-to-buy ISA’s only work for houses up to 250k, unless you’re in London and that’s 450k, because honestly there’s not that much that you can get for under than nowadays.
‘None of the ones we looked at were under that, so having a help-to-buy ISA for the last four, five years, maybe even longer, was completely pointless and that money could have been in a better savings account, getting more interest.
Be aware of extra costs
The TikToker also wishes she’d known that ‘you need more than just the deposit amount, adding ‘there’s so much more stuff you have to pay for’.
‘Not even just the deposit and the solicitors, which is another two grand on top, but you can buy your house and a week later you need to pay your first mortgage payment.
‘Ours is around £1450, so that’s almost £1.5k we need on top of all the other stuff we’re paying for currently, which I did not think about until last week.
Know what your priorities are
Finally, she recommended that buyers think about what their priorities are before beginning their search.
The influencer said ‘I cared more about location than the house and I wish I’d just known that before because we actually reserved a house that we didn’t even want in the end.
‘Luckily we got that reservation money back, but we weren’t supposed to I don’t think.
‘Knowing whether you prioritize location or home is such a big thing and I wish I had known that to start with.’
People in the comments chimed in with their own tips and tricks, with one person writing ‘Lifetime ISA’s are the better ones – you can save more per year and house up to £450K (recommend The MoneyBox) Congrats on the house!’
Another added ‘We bought a house which needed work doing it. We knew this but was shocked when we started getting quotes. Get trades people in before you buy!’
‘Am I entitled to share in the increase in value since she used relationship property funds?’ Photo / 123rf
Q: I separated from my wife five years ago. She re-partnered shortly after our separation. We still need to divide our relationship property.
Two years ago, my ex-wife and her new partner purchased a property
- House hunters in Derby were gobsmacked to find the shocking listing
- The home was a cannabis farm back in 2019, housing more than 500 plants
- Snaps showed plants, pots, fans and other remains of growing paraphernalia
Estate agents have faced online mockery after advertising a family home for sale using pictures from when it was a cannabis farm.
House hunters in Derby were gobsmacked to find the listing of the five-bed family home included photos of large plants, pots, fans and the remains of other industrial-sized indoor growing paraphernalia throughout the property.
The Derbyshire property was listed for sale on Rightmove by estate agents Bagshaws Residential for a ‘bargain’ auction guide price of £150,000 to £200,000 on 6th July.
However the listing went viral when people spotted the shocking images.
It turns out that the home was a cannabis farm back in 2019, with police snaps showing it housed more than 500 plants across the 12-room dwelling.
The photos showed reflective silver material peeling off the walls, accompanied by what appears to be large carbon filters among many entangled wires.
Panicked estate agents quickly hid the ‘incriminating’ images.
The ‘indoor gardening’ equipment can be seen within several rooms, with standing fans littered across the attic floor and more than 16 substantially-sized plant pots filled with soil stacked up in the kitchen.
There are little signs that it was a liveable space other than a small toilet, several discarded mugs and a clothes hanger in the kitchen.
Estate agents Bagshaws Residential’s listing described the three-storey home as in need of ‘a full scheme of renovations’.
The listing also warned that ‘currently no internal viewings are available’.
Meanwhile, stunned viewers online took to social media share their bewilderment as to why the estate agents would use photos that showed its previous history so plainly.
The Derby property is currently sold and under offer, while another local commenter claiming online that it sold for £210,000 at auction on August 1st.
Sequence Auctions, part of the Sequence group along with Bagshaws Residential, explained it was ‘vital that selling agents ensure the state of repair of the property is transparently shown so buyers can make informed decisions’.
However they did not clarify why the images appeared to afterwards be removed.
One person online commented: ‘Can’t believe the estate agents have uploaded these photos’.
Another said: ‘I’m literally two mins away from that house and I’m baffled how it was used for what it was being next to a primary school.’
A third joked: ‘Some serious indoor gardening going on there,’ with another adding ‘a bargain is a bargain in this economy.’
Someone else added: ‘It sold for £210k via auction, that surprised me. Thought it’d be more. No doubt it’ll be flipped and back on the market for £800k in a year though.’
The Facebook page for Derbyshire Constabulary’s Safer Neighbourhood Policing Team for Normanton and Rose Hill posted about the repossession of the home back in May 2019, writing: ‘Well as the late great Freddie Mercury once sang.. ANOTHER ONE BITES THE DUST.
‘Officers from Normanton SNT have located yet another Cannabis Grow with in excess of 500 plants in the Normanton area.. (plant emoji)… Currently gathering evidence and continuing with enquiries to identify the offenders..
‘We’ll keep you posted. £upinsmoke.’
Derbyshire Police confirmed that a cannabis grow was found at the property in May 2019, but that no arrests have been made in relation to the investigation.
Bagshaws Residential said it was a matter for Barnard Marcus Auction House to respond on – both are part of the Sequence group.
Chris Glenn, divisional managing director for Sequence Auctions, said: ‘Landlords that have had a difficult experience managing a property may have gone through months or even years trying to reclaim them and will quite often enter them into an auction for an efficient sale.
‘However, following the pandemic the auction process has somewhat changed and many auctions are not back in the room.
‘They have remained largely digital with many investors buying properties online without seeing them.
‘This makes it vital that selling agents ensure the state of repair of the property is transparently shown so buyers can make informed decisions.
‘This is especially true in auctions as the sale is a legally binding exchange, often on the day, compared with a private treaty sale which will take a number of months.’
- Daniel Kenigsberg had been passed down a parcel of land from his late parents that he intended to keep undisturbed
- To his horror, the property was sold from under him by a scammer who impersonated him and raked in $350k from the illicit sale
- In a lawsuit, Kenigsberg is now asking for the property to be returned to him and to have a $1.4M home removed from the land that was erected since the fake sale
A man returned to his family’s Connecticut property after five years to find a $1.4m home being built after a scammer impersonated him to sell the land.
Dr Daniel Kenigsberg has owned the piece of property in Fairfield, Connecticut, after his late mother passed away in 2007.
The 0.45 acre lot remained in covered in trees for seven decades after his parents Nathaniel and Esther bought an acre but only used half of it to build their home.
After selling the family home in 2011, Kenigsberg had plans to pass the empty lot, which is worth $350,000, down to his children and grandchildren.
In August 2022 however, the lot was sold without his knowledge and someone impersonating him signed a power of attorney to grant a solicitor to sign legal documents for him and move the property on to a real estate firm.
In a lawsuit, it is said that in October of last year a Connecticut firm called 51 Sky Top Partners bought the land for $350,000.
A few months after this, they had a construction company begin building a four-bedroom house on the property with Kenigsberg completely unaware.
The 4,000-square-foot house appeared for sale on Coldwell Banker in March for $1,475,000.
It wasn’t until May of this year when a school friend called Kenigsberg to let him know that a fellow friend was receiving hospice care and mentioned the property.
When he eventually made the trip and saw the home that had been built, Kenigsberg had his attorney look into what happened.
Kenigsberg told the Washington Post: ‘I was living my life normally until May 31st, and all of a sudden, this happened.’
According to the lawsuit, some unknown person from South Africa made a fake passport for Kenigsberg with an incorrect birthday, photo and address.
This person then had Connecticut lawyer, Anthony Monelli execute the transaction after posing as Kenigsberg and appointing him as power of attorney.
After his attorney informed 51 Sky Top that they hadn’t purchased the property from the correct owner construction stopped.
In a statement to The Washington Post, owner Gina Leto said: ‘We, as buyer, had no contact with the party impersonating Kenigsberg.
‘We had no reason to believe he was an impostor. We would not have paid $350,000 for the property — nor would we have invested hundreds of thousands of dollars more in construction — if we had.’
Leto is also said to be filing a request for the company to be removed from the lawsuit.
Kenigsberg filed the lawsuit against Monelli and 51 Sky Top Partners on July 14 in the U.S. District Court for the District of Connecticut.
He has requested that he have the property returned to him, have all other parties involved to cease their activities on the land, and to remove the home they built.
Fairfield Police are also investigating the transaction.
- The property offers sprawling views of the Norfolk coast line and salt marshes
A stunning £4.5 million five-bed house with a four-bed guest cabin nestled in an idyllic spot boasting of coastal views is up for grabs – with the lucky person able to win the property for just £10.
The beautifully designed home, complete with a swimming pool and yoga space, boasts of views of the Blakeney salt marsh and the harbour in Norfolk.
It is the latest property to be listed as part of the Omaze Million Pound House Draw. The property comes mortgage free – with all stamp duty and legal fees covered, with the lucky winner also being handed £100,000 in cash.
If the victor decides to rent it out, local estate agents estimate the property could achieve a long term annual rental value of around £60,000.
The dream property has a main house with five-bedrooms, an additional guest cabin with another four-bedrooms and a standalone office. The sprawling home provides plenty of room for entertaining spaces.
The house showcases striking modern architecture that has been meticulously designed to celebrate the nearby coastline, through its use of floor to ceiling feature windows that perfectly frame the coastal views, which can also be admired from several balconies and terraces throughout the property.
The front of the home has a large landscaped decking area that links directly to the heart of the house – the open plan kitchen, living and dining area, complete with sliding glazed doors on each side.
When opened the doors create a seamless continuation of space from the swimming pool courtyard, through the house and onto an outside terrace and dining area that overlooks the North Norfolk coastline.
The lounge, set between the ground and first floor has a large framed view out to the North Sea, while the principal bedroom has twin dressing areas and bathrooms.
The first floor also has three further double bedrooms with en-suite bathrooms and a balcony.
A wellbeing area provides a steam room, yoga space and gym with ‘Technogym’ equipment including a Treadmill and Weights System accompanied by a Peloton exercise bike – while the cinema room has been built in the ‘Everyman’ mould with acoustic walls, doors and ceiling
The guest cabin – which is attached to the main house – gives friends and family their own private quarters with a further four double bedrooms with en-suite shower rooms and the principal bedroom providing fine views over to the village and prominent village church.
All rooms have direct access to the private and enclosed gardens, with a terraced entertaining area complete with kiln fireplace.
A heated swimming pool, with the south to south-west aspect providing the ideal setting for outside enjoyment.
There is also a raised decking and an outside kitchen area with steps down to paved areas that surround the house.
The property also has a stand-alone studio building – dubbed The Hub – at its southernmost point. This can be accessed through landscaped gardens of nepeta and tall grasses, with a wildlife pond, which leads to glazed doors into an open plan area, perfect for use as an office space.
With a sitting area, meeting area and desk space, this is the ideal work from home setup, complete with a kitchen, shower room and a further room that can be used for storage.
An expanse of lawn sweeps away from the house, with wildflower areas, tall grasses and clipped hedging providing horticultural form all year round. Within the grounds is a kitchen garden, ornamental pond and easily maintained private gardens.
The house is situated close to Blakeney – a quintessential coastal village, with pretty flint cottages lining narrow streets leading down to the charming quay.
The village has excellent pubs including The White Horse and Kings Arms, a thriving delicatessen, art galleries, The Moorings fish restaurant, the renowned Blakeney Hotel and the convenience of a village store.
The picturesque market town of Holt, just over four miles away, is renowned for its boutique shopping, Byford’s delicatessen, good restaurants, pubs and further specialist and everyday shopping.
There are also banking and transport facilities within the town and a host of schools nearby.
As well as making its Grand Prize winner a multi-millionaire – the Omaze Million Pound House Draw, Norfolk – will support the RNLI – raising crucial funds to help the charity continue its lifesaving work.
The RNLI’s volunteer lifeboat crews provide a 24-hour rescue service in the UK and Ireland, and their seasonal lifeguards look after people on busy beaches.
All of the training, kit and equipment RNLI’s lifesavers need is funded by generous donations. It’s with the support of the public that the charity continues to save lives at sea.
Omaze has guaranteed a minimum donation of £100,000 and has a target of at least £1,000,000.
The draw has been launched by BAFTA winning actress, wild swimmer and RNLI Ambassador, Joanna Scanlan, whose sister-in-law is a volunteer Deputy Launch Authority at RNLI Beaumaris on Anglesey, which means she is responsible for requesting the launch of their lifeboat.
Joanna said: ‘This fabulous house in Norfolk is a truly life changing prize for one lucky winner – but more importantly, the money and awareness raised through this innovative partnership with Omaze will help the RNLI continue its lifesaving work.
‘The RNLI has saved over 142,700 lives at sea since 1824 – and everyone who enters will be contributing towards the crucial training and equipment their lifesavers need to help people who find themselves in trouble in the water – and of course one lucky person is guaranteed to win this dream home too.’
James Oakes, Chief International Officer at Omaze, said: ‘We’re delighted to be partnering with the RNLI for our latest house draw in Norfolk. By offering this stunning property, along with £100,000 in cash, we’re giving people the chance to live mortgage and rent free for the rest of their life – as well as raising money for charities whilst introducing them to brand new audiences.
‘We’re incredibly proud that the Omaze community has already raised £15,400,000 for good causes across the UK.’
In addition to winning the Grand Prize house – people who enter by midnight on Sunday August 13 will be in with the chance to win an additional life changing £250,000 in cash.
Draw entries for the Omaze Million Pound House Draw, Norfolk are available now at www.omaze.co.uk. The draw closes on Bank Holiday Monday August 28 for online entries and Wednesday August 30 for postal entries.
For full terms and conditions, see www.omaze.co.uk. No purchase necessary to enter. Over 18s and UK residents only.
The new $1b PwC Tower at Commercial Bay. Photo / supplied
More Aucklanders are back at their offices five days a week in a trend dubbed “work from work” by New Zealand’s largest commercial listed landlord.
Scott Pritchard, chief executive of multi-billion dollar landlord Precinct Properties,
- Inside five beach huts for sale in various seaside locations around England
- The beach huts range in price from £30k to three times that amount at £95k
- The most expensive hut on our list is also the smallest, as well as being leasehold
With the summer just around the corner, the prospect of enjoying a view of the seaside from your own beach hut sounds appealing.
They can differ in value significantly, as our selection of five beach huts demonstrates.
They range in price from just shy of £30,000 to more than three times that price at £95,000.
The most expensive in our list is also the smallest, with the Essex beach hut showing a price tag of £95,000.
The least expensive is in Norfolk and has its own parking. It is on the market for £29,950.
1. Hunstanton, Norfolk, £29,950
This beach hut is just off South Beach Road in the Norfolk seaside town of Hunstanton and is accessed via a remote secure parking gate.
It has an asking price of £29,950 and is being sold by Belton Duffey estate agents.
2. Kingsway, Hove, £33,500
Some beach huts are restricted to local residents only, which is the case with this £33,500 version in Hove’s Kingsway.
It boasts coastal views and is only available to buyers currently living in Brighton & Hove. It is on the market for £33,500 via Callways estate agents.
3. Holland-On-Sea, Essex, £42,500
This brightly-coloured beach hut is in Holland-On-Sea in Essex and has a price tag of £42,500. It is being sold by Sheens estate agents.
Its pink exterior contrasts with the white walls inside, although the colour theme continues with pink accessories.
4. Tankerton, Kent, £65k
Far-reaching views of Kent’s Whitstable Bay are on offer from the spacious verandah at this beach hut in Tankerton.
The exterior of the hut is currently being repainted. The property is being sold for £65,000 via Spiller Brooks estate agents.
5. Thorpe Bay, Essex, £95k
The most expensive beach hut in our list is also in Essex. It is in Thorpe Bay by St Augustines Avenue steps and has a price tag of £95,000.
The relatively narrow beach hut is also leasehold, although no further details are provided about the length of the lease on the property listing by the estate agent handling the sale, Hunt Roche.
By Padraig Collins For Daily Mail Australia
05:21 27 Feb 2023, updated 05:21 27 Feb 2023
- More than two thirds of Aussies believe they’ll never own property
- But living at home for five years can save you $138,000
Young Aussies desperate to get on the housing ladder are losing hope they’ll ever own a home but new data has revealed there is one fool-proof hack to saving for a deposit – moving back in with your parents.
A new survey found more than two-thirds (72 per cent) of Australians between the ages of 18 and 34 believe they will never be able to afford to buy their own home.
But Aussies willing to move back in with your parents for five years can save an incredible $138,000 – which is more than enough for a reasonably-sized house or apartment.
A Resolve Strategic survey found younger Aussies have an incredibly grim outlook on home ownership after the Reserve Bank hiked interest rates nine times since May 2022 to the current level of 3.35 per cent.
Research done by comparison site Finder found the average cost of living out of home and renting adds up to $24,927 a year and could set your finances back by up to 10 years.
Finder money expert Sarah Megginson said living at home can be a huge help for young people trying to get onto the property ladder, especially with inflation hitting a rate of 7.8 per cent in the December quarter.
‘Staying at home for a few extra years rent-free and taking advantage of compound interest can add tens of thousands of dollars to a person’s savings,’ she said.
‘Often, people move home to save but they keep up poor spending habits, so they don’t end up ahead financially.
‘Having a budget in place and minimising spending is the key to maximising your savings.’
Someone renting spends around $15,000 a year on rent, almost $10,000 on bills and groceries (including alcohol) and $163 on household maintenance items – an average of $24,927 a year.
Most will also spend an additional $950 on one-off items such as furniture, appliances and kitchenware on top of that.
The average young Australian (millennial and Gen Z) has $17,917 in savings and saves around $872 per month, according to Finder.
Ms Megginson acknowledged that despite the tough economic times and ever increasing prices, living with parents was not always possible.
For renters looking to buy their own place, she suggested creating a budget strategy.
‘Set yourself a timeframe for buying a home, then work out how much you need to save each month to meet your target,’ she said.
‘Consider moving to a cheaper suburb or downsizing to a smaller place. Even a small difference in your weekly rent could save you thousands of dollars a year.’
Ms Megginson advised people also look to cut down on unnecessary expenses, such as pricey gym memberships and eating out a lot.
She said the one advantage of all the rate rises since last May is that banks now offer higher interest on savings.
That means ‘there is great value to be had in a good savings account – any money you can save can be making more money for you in the right savings account’.
How to save for a deposit while you’re renting
Work out your deposit size and price range
Do some research on where you want to buy, what sort of property you’re interested in, and be realistic about how much you can afford to pay in monthly home loan repayments.
This will help you determine your deposit size and give you a realistic saving target.
Create a budget
As a general guide (and depending on your lifestyle needs), you should allocate around 50% of your income on living expenses (such as rent, transport, insurance and utilities), 25% of your income on entertainment (such as dining out, movies and concerts) and roughly 25% should go towards your savings.
Around 15% of the amount you’re saving should go directly towards your deposit fund.
Find more ways to cut back on spending
Find a roommate, move to a cheaper suburb or consider downsizing to a smaller or older place. If you’re currently paying $300 per week in an inner-city location, consider moving to an outer suburb location where you might pay just $200 per week.
A $100 weekly saving may not seem like much, but this could add over $5,000 to your savings account each year, which could fast-track your way into the real estate market.
Look for a higher interest savings account
Open a high interest account that is dedicated to your deposit savings. You can separate your deposit funds from your other accounts and keep track of how much interest you’re earning each month.
When it comes to applying for a home loan, making regular deposits into a high interest savings account will demonstrate to the lender that you have good financial discipline.