How do I set a realistic deposit savings goal?

Short answer: Target price x deposit % + extra costs = total goal. Divide by monthly savings = timeline. Adjust if too long.

What this actually means in plain English

Start with your target house price in your area. Multiply by your target deposit percentage. Add $3,500 for extra costs. Then divide by your realistic monthly savings. If the timeline is too long, reduce the house price target or increase savings. A realistic goal is one you can hit without hating your life.

Key Facts

Research actual prices in target areas
Add 5% buffer for negotiation and extra costs
Be honest about realistic monthly savings
Adjust house price target if timeline too long
Review and update goal every 3 months

Example

Target Area: Christchurch

Median Price: $550,000

Ten Percent Deposit: $55,000

Extra Costs: $3,500

Total Goal: $58,500

Monthly Savings: $1,000

Timeline: 58.5 months (4.9 years)

Related

Back to Stackhold