Raising a deposit for your first home

1. Consolidate all credit cards, store cards or other high interest debt into one loan and pay this off as quickly as possible. This will help make repayments easier to track as well as minimise interest repayments.

2. Understand exactly where you spend your money. Try to keep a diary for a week or so to record all your purchases, from your daily coffee through to major commitments. Once you identify where you’re spending you’ll be able to make the most effective cut backs.

3. Create a realistic budget that factors in all major financial commitments, such as school fees, your telephone and entertainment, while leaving a buffer for incidental purchases. Just remember, if your budget is too restrictive it’s going to be impossible to stick to; so set achievable goals and reward yourself when you meet them.

4. Avoid using credit cards wherever possible; if you need a credit card, just stick to one.

5. Live with your parents. While it might seem like like a hassle, you can save considerably on rent – and think of all those home cooked dinners!

WHERE TO FIND MORE INFORMATION There are a number of government incentives available to first home owners to help them enter the market, including the first home owner grant and stamp duty concessions, which are administered on a state-by-state basis. For further information on terms and conditions in your state visit your relevant government revenue office.

NSW – www.osr.nsw.gov.au VIC – www.sro.vic.gov.au ACT – www.revenue.act.gov.au QLD – www.osr.qld.gov.au WA – www.dtf.wa.gov.au SA – www.revenuesa.sa.gov.au NT – www.nt.gov.au/ntt/revenue TAS – www.treasury.tas.gov.au