Frances Cook

Finance author reveals the secrets to saving up for a home deposit fast

PHOTO: Those wanting to buy a house or rent in an area closer to a major city may wish to consider investing in stocks – an avenue Frances deems to be ‘doable’ and an option that works ‘for all stages of life’ 

A New Zealand personal finance author has shared how to save for a 20 per cent house deposit faster and why investing in the stock market is better than accumulating money in a savings account.

Frances Cook, 32, said as housing prices are on the rise, it can seem daunting or impossible for first home buyers to enter the property market, but the best thing she recommends is ‘not panicking’ and thoroughly consider your financial goals.

‘Depending on your goal in life, buying a home can actually hold you back,’ Frances told FEMAIL, adding: ‘Putting together a house deposit of $100,000 can feel impossible, and may lead some people to give up.’

Those wanting to buy a house or rent in an area closer to a major city may wish to consider investing in stocks – an avenue Frances deems to be ‘doable’ and an option that works ‘for all stages of life’.

‘You can use stocks to build up a level of financial independence that lets you securely rent forever, or you can use it to help to you build up a deposit,’ she said.

When considering financial options, it’s important to seek advice from a professional to determine what’s best for you.

New Zealand personal finance author Frances Cook (pictured) has shared how to save for a 20 per cent house deposit faster and why investing in the stock market is better than accumulating money in a bank account

New Zealand personal finance author Frances Cook (pictured) has shared how to save for a 20 per cent house deposit faster and why investing in the stock market is better than accumulating money in a bank account

‘Rather than frantically putting your money into a savings account and watching house prices keep going higher while you struggle to keep up, you can put it into stocks instead,’ Frances said.

‘Stocks have actually increased more in value over the last ten years than housing has, so it can help you keep up.’

Unlike property that requires a large lump sum deposit, investing in stocks and shares gives the individual the freedom to choose the figure for themselves.

Frances said online investing platforms, such as Raiz, FirstStep and Spaceship, allow users to start for as little as $5, which is perfect for beginners.

‘The only trick is a long-term strategy; stocks can go up and down a lot over ten years, even if you eventually come out ahead,’ she said.

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