A saving grace rescue for borrowers in dire need
With the market moving away from high risk loans, it's more important than ever for borrowers to save up a decent deposit - though many are finding this to be challenging territory. AB's Agnes Gajewska took a look at Peter Cerexhe's "Only 104 weeks to your home deposit" which promises to rescue borrowers in dire need of savings advice.
Title: Only 104 weeks to your home deposit
Author: Peter Cerexhe
Publisher: Allen & Unwin
RRP: $19.95
Most brokers will agree - telling a bright-eyed bushy-tailed couple that their first home dream won't come true is not a pleasant experience. Yet with the volatile state of the market, which is seeing some lenders cancelling low and no-deposit loans, this is a relatively common predicament.
However since often well-earning borrowers do not qualify for a loan merely due to a lack of deposit, any brokers who would like to go the extra mile for their clients may find that Peter Cerexhe's new book offers a solution
Only 104 weeks to your home deposit is aimed at motivating a savings-challenged audience to achieve a monetary goal within a limited (two year) timeframe. The tone of the book is explanatory, simplistic and fairly repetitive and aims to drum home one specific lesson - sacrifice in the short term means prosperity in the long term.
In a pragmatic manner the book outlines all of the costs that can be expected and savings that can be made in the 104 week period. The author brushes over accounts, loans and fees involved within the mortgage process, providing a basic outline of each. However the main focus of the book falls on methods of saving money - from selling assets to taking up a second job - with many of the book's 157 pages seeking out untapped sources of savings and presenting these in easy-to-read tables. If you ever wondered how much your daily cup of coffee was costing you, this is where this (among other) information lives. Be warned discovering your 'coffee cost" is likely to have you cancelling your morning cappuccino and walking to work.
However, while the book is a good read for people who struggle to save, do not expect to find mind-boggling philosophy or immense inspiration within its pages. It is simple, pragmatic and tangible. It states, without much ceremony - though often a tiring degree of repetition - all possible avenues of saving.
The only other downfalls is that the book relies on the concept that a considerable two year sacrifice can lead borrowers to live a comfortable lifestyle once their deposit is collated - a dangerous claim in a climate where households are increasingly experiencing "mortgage stress."
All-in-all however, it is an easy, quick read and a good place to turn for anyone who is genuinely unsure of how to start their savings journey.
