How to save money and invest in a house
Buying the first home starts with raising enough funds for a home loan deposit. While everyone understands the need to save for at least 10% to 20% of the purchase price, not many know exactly how to accumulate that amount of money.
Saving money to buy a house requires some sort of planning and strategy. Here are some useful tips for raising home loan deposits.
Open a First Home Saver Account
First time home buyers in Australia should open a First Home Saver Account, a tax effective way to save for a house deposit. Basically, the first $5000 of individual contribution made each year to the account will see the government contributing 17% of that amount. This is much higher than any interest rate in savings accounts or fixed term deposits.
The First Home Saver Account should not...