by Miss L V Liufalani

Created on: August 20, 2008   Last Updated: February 25, 2009

When you are young and one of your ultimate goals is to own a home. It seems really simple, save money for a deposit. Have your bank finance a mortgage for a few years and then buy the house. If only it was so simple.

The moment you realise that you want your very own home because you don't want to rent anymore. That is when you should start planning and investigating what your options are and what needs to be done for you to get it.

Now most people are not as lucky as my parents were who won the lottery and used it to put a down payment on their first home or even myself who asked for my inheritance early at the age of 23 years for my first home. The average person actually has to make the effort to save.

So the first step is to mentally prepare yourself. Don't think that saving for that deposit is a straight and narrow path. Things always come up where you need money and the only money available is the savings with your bank that is supposed to go towards your own home. Funerals, weddings, overseas trips, a new car, job loss, accidents where someone ends up in hospital. The list practically goes on.

So talk to your bank manager, they will look over your finances as it stands. Your Income, Expenses, Credit History and come up with some solution to help you save for your home. Open up a special account made specifically for savings with high interest. Some banks can offer a rough calculation that will give you 100% finance if you can show that you have a minimum six monthly statement showing money deposited and saved for a home, without dipping into it. But remember the high interest payments that come with that option. Other banks will give you a 80% mortgage finance if you can come up with the 20% deposit. These ratios can vary with different banks, so investigate it very carefully.

There are some people who believe that they can't buy a home by themselves. So speak to a lawyer regarding this situation if you decide to get involved in partnerships. May it be your best friend, a family relative, non-married partner or husband/wife. The worst case scenario is a break-up and this is something that people don't want to think about because it will never happen to them. But unfortunately you should look into anyway.

Saving a deposit to purchase your home can make a person really think. You can get multiple jobs. Work yourself to death but at least in the end, your children will be able to have a permanent home to live in. The second way is to raise the money, Have a fund raiser or hold a party with a cover charge at the door. Enter competitions/challenges where you can win money or fork out money each week hoping for that one chance that you will win the lottery. Gamble at the casino and hope to win big. Or you can move back home with the parents, pay no rent and save up that deposit. Which is what my cousin is doing at the moment. Then there is selling your talent at a high price through Art. Like being a movie star, singer, writer, paintings or photography.

What ever the case maybe, if you are prepared to purchase a home and want a starting place. Consult with your bank and lawyers because if it is a benefit to you, it is a benefit to them.

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