How do I save for my deposit?

The first step toward successful saving is to determine your goals – what do you specifically want to save your money for? What is it you want to buy?

We assume that because you are reading this article your main goal right now is home ownership, but that’s a little too vague for the purpose of this exercise.

We want you to really think about the home you want to own.

Is it your first home or are you upgrading?

Where will your home be?

What will it look like?

How many bedrooms will it have?

Will it be new or a renovator’s delight?

The idea is to stay focused on your goal.

A good way to do this is to have a look through the real estate lift out in your local paper and cut out some pictures of the home you would like to live in. Or you might decide to drive around your neighbourhood and take some photos of your ideal home. Then put this image somewhere so you will see it every day. Stick it on the fridge if you have to!

Once you have your goal in mind, it’s time to put a price tag on it. Work out how much you will need to pay for your dream home and then you will have an idea of how much you will need to borrow.

Are you going to try to save a 20% deposit or will you be happy with a 10% deposit if it means getting into your own home sooner? The key is to keep your savings goal achievable.

Once you have a handle on what you need to save, write the down this amount next to that picture or photo of the home you intend to buy.

How Michael saved his way into the property market
You might be interested to know that I worked my way through Uni.

It was sheer determination that allowed me to save for a deposit on an investment property that I bought with my parents while I was still living at home. I worked in the storeroom at Portman’s Fashion House to get enough money together.

It wasn’t so easy to get a home loan then. In those days you had to go to the bank and make an appointment with the manager, you had to have a savings record and proof of income.

I was always over-confident so it didn’t scare me to take on these loans, but that was youthful arrogance that I was lucky to get away with!


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Pamela Yardney


Pamela was a founding director of the Metropole Property Group. She co-authored the top selling book "The Australian Guide to Buying & Selling Your Home." In her articles she freely shares her years of experience as a property investor & developer and a property management expert. Visit

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