Top 5 Ways to Stop Paying Rent
IT has often been quoted as ‘the great Australian dream’. The ability to own your very own home.
We have therefore put together the Top 5 ways to Stop Paying Rent to help you achieve this very fine ambition in life. You won’t have to turn into a scrooge either but you will have to be thrifty and maybe cut back of that extra coffee day out or the night at the pub every so often.
How to Buy a Home of Your Own
The real secret you will discover is to become focused – believe in what you are trying to achieve – and it will happen. Be half-hearted and you will fail.
1 Save
Of course no one will have to tell you this but it must remain at the top of a list containing the Top 5 ways to Stop Paying Rent as it is all important. There are ways to assist you in this without just hollow talking, the first being:
- First Home Saver Account: The First Home Saver Account has been set up by the Australian Government to assist first home buyers to eventually realize their dream of home ownership. It allows you to save up to $75,000 in a special account that attracts considerable taxation benefits.
- Savings plan: Saving is not all that simple unless you have a plan, then once you have settled on a plan- stick to it. One of the best plans in this area is to consider the fact that normally renting is cheaper than buying. You will most likely be paying less a month for rent than you would be if paying back a housing loan, you will not be paying council rates nor mortgage insurance – but you will be paying all these additional costs once you obtain your loan – so why not start straight away, now! Put away each month the equivalent amount you will have to pay once you become a first home buyer and more. Your eventual lender will be impressed by this approach also.
2 Minimize tax
When you minimise the tax you pay, don’t automatically spend the extra money you get in your tax return, add what you save to your savings. Don’t spend it as if it is a windfall, put it into your savings and you will be surprised how the amount eventually rises. Especially if you are using the First Home Saver account where you will be enjoying the taxation benefits it provides.
3 Budget
Another no-brainer but who does it properly? And if they do who sticks to it? It has been listed at number three in the Top 5 Ways to Stop Paying Rent because it is one of the most important things you can do. But to successful you must be focussed. It is not easy, nobody is saying it is, but it is a must. Clear all your debts before you start and when ready put those savings to use by budgeting to live on the same amount you had managed to do when you were burdened with the debt.
4 Consolidate living expenses
If possible get into cheaper accommodation while building your savings. You may be even able to live back in your parents home for the interim period especially if they understand why you wish to do so. You may even think about putting off your annual holiday in Bali.
5 Work two jobs
Well we have finally made it to the last of the Top 5 Ways to Stop Paying Rent and if you can manage it, it will work wonders for you. Get that after hours or weekend job and put all your earnings into your savings for your first home. The reward for doing so will be the day you put your key in the front door of your own home for the first time. You will then reflect on the past and be rightfully proud of what you have achieved.
To cap off the Top 5 Ways to Stop Paying Rent:
- Save, save and save.
- Minimize tax.
- Budget.
- Live cheaper.
- Work overtime.
And above all remain focussed on what you are trying to achieve throughout the whole exercise. If you’re interested in learning more simple and effective ways to get out of the rent trap, contact Home Loan Finder now.
Related posts:
- Rams Rent Saver
- To Rent Or Buy Is The Question
- Rent versus Buy a House?
- The Right Ways to Refinance
- The Domino Plan For Paying Off Debts
- Ways to Save when you Live on your Own
- Starting a First Home Saver Account
- 15 ways to Successful Property Investment
- How to Buy a Home Together as a Couple
- What features help repay a home loan faster?
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded the 2011 Non bank Lender of the Year this feature-packed loan rewards customers with a bonus rate drop of 0.25% after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
Ask A Question