Property Portfolio Building Step 1. Save as much as possible, as quickly as possible. Your first deposit is like planting the first seed.

Saving a deposit is an easy thing to say, but a far more difficult process to put into effect when talking about saving a substantial deposit. Even if you only have to save 5% of the purchase price, a $500,000 house means you have to save $25,000 before you can apply for a loan. But, all is not doom and gloom! There are some easy things you can do to make the process easier and achievable.

Just follow these tips and you’ll be well on your way.

First of all, do some market research so you know exactly how much you have to save. Make sure you add in all the extras for things like application fees, insurance, legal fees, government fees, mortgage insurance where applicable, and any other general expenses. This is the only way you can set a complete budget and achieve your financial goals in as short a time as possible.

Now that you have a target in place, it’s time to put some saving strategies into effect.

• Drastic times call for drastic measures! So now is the time to cut back on luxury expenses. It might mean cancelling your gym membership or cooking more meals at home rather than eating out, but it is all for a good cause so start cutting back to get you on your way to achieving your financial goals.
• As you start accumulating your savings, make the most of it by opening a bank account which pays the most interest. Do some online research and choose an account which is easy to deposit, but difficult to withdraw funds from, and which still pays a premium rate. Every dollar counts, so it pays to get some money back from the bank for a change.
• Keep yourself abreast of market conditions. By staying in touch with the property market you will be aware of changing prices. In some cases you might discover that houses in the area in which you want to buy have stabilised in value or, may even be decreasing in price. This means you won’t have to save as much so keep an eye on the newspapers and keep visiting local real estate agents.

So as with everything in life taking your first step is probably the hardest however if you stay focused and disciplined your first property investment might not be as far away as it first seems!