Buying your first property is one of life’s biggest milestones, and saving for the deposit can feel like climbing Kosciuszko in thongs. Rising dwelling values keep moving the goal‑posts, while interest‑rate swings and scheme acronyms add extra confusion. Knowing where to put your savings to give you the best chance of reaching a rung on the illusive ladder can be confusing.
You might be asking yourself:
‘Should I put my money in a savings account or invest it to try and grow my money quicker?’
At Stockspot, we help Australians make calm, confident decisions about their financial future, especially during key life milestones, like saving up to purchase your first property. Stockspot Consultation gives clear guidance on how investing into a diversified portfolio could help you achieve your goals and turn “someday” into a settlement date.
This service is free and obligation free.
Common pain points for first-home buyers include:
- Target deposit values growing at a quicker rate than savings accounts. Core logic data suggests a 20% deposit on the average property in Sydney would be over $140,000.
- Scheme overwhelm. With FHSS, FHBG and state grants to name a few, each scheme has its own rules and paperwork, homebuyers can be left confused and overwhelmed.
- Low savings interest rates. Bonus rates tied to terms and conditions and with some rates lagging inflation, cash can feel ‘safe’ in a savings account, yet is slowly losing its purchasing power.
- Finding the lifestyle vs sacrifice balance. Travel, weddings, HECS or even just enjoying an active social life, can all be difficult to balance while trying to save.
What to do first
Buying a property is a huge achievement, but before making any decisions consider:
- Define your target deposit
Consider property prices in your desired area or surrounding suburbs and use an online tool or speak to a broker to understand your borrowing potential and the deposit size you realistically need. - Audit spending and automate savings
Redirect windfalls (like tax returns or bonuses) straight into your deposit bucket. Consider automating a weekly or monthly value into your savings and investing accounts, to avoid temptation to spend this money. - Audit your debt
Consider paying off high-interest borrowing early, to avoid paying excess interest or hampering your borrowing capacity. - Understand your timeline
Knowing your time horizon, and how long you realistically have to save before you want to move or buy your home, can help guide your decision to save or invest.
< 3 years – consider more liquid products like cash ETFs and Stockspot Savings – keeping your money accessible yet earning a return
> 3 years – consider investing. Low cost ETFs are a simple vehicle to keep fees low, so you see more of your returns growing year on year. Diversified portfolios, like those offered by Stockspot, can also help you get a mix of defensive and growth assets, to meet your time horizon and risk capacity.
Explore how Stockspot can help you invest for your house deposit
Stockspot advisors can discuss with you what your life goals are, and when you want to achieve them. A financial strategy can ensure all your savings supports those goals, and are not losing their buying power, while you build towards your long term goals.
Through Stockspot Consultation, we offer investment guidance to help you:
- Understand your investing goals with your savings to reach your deposit goals
- Align your portfolio with your values – such as sustainable investing
- Invest in a smart, low-fee portfolio
- Automate top ups and rebalance your portfolio to remove emotion from decision making
- Make informed decisions without pressure
Whether your goal is a $25,000 deposit or $250,000+, our experienced team can help you plan wisely.
We advocate for simple wealth management solutions that don’t cost you your returns. Both data and feedback from Stockspot clients indicate that complex strategies often underperform simpler investment structures, like those offered at Stockspot.
At Stockspot, we advise our clients to invest in a diversified selection of ETFs. This strategy has consistently outperformed similar funds over the long term.
Want to know more about Stockspot?
Stockspot is Australia’s largest online investment adviser, helping over 16,000 Australians grow and protect their wealth with evidence-based, low-cost portfolios. Find out about our portfolio performance here.
