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PURCHASING property may seem even more impossible for many South Africans now than a few years ago, but the basics of saving still apply, says Betterbond sales director Marsha Haupt.

In order to be able to plan effectively to buy a house, people need to have a "feel" for how much they need in order to be able to purchase a house in that range.

To save money is to get into the habit of taking funds and placing it into an account where it cannot be accessed immediately. Banks offer a variety of packages and it is a good idea to look for a saving option that offers the best interest rates for very little risk. Some good examples are 32-day notice and fixed accounts.

The next step is to look at expenses that can be eliminated, such as satellite television, new clothes, eating out and trips to the hairdresser. Cutting down on cellphone usage as well as getting rid of credit cards will also be extremely helpful. By downsizing current living expenses and putting aside any lump sums of money, such as tax refunds or bonuses, will get a person that much closer to a home of their own.

It is essential to remember that the bigger the homebuyer's deposit is, the less they will end up being billed in interest over the long term.

For those who are in a position to do so, it makes sense to purchase a property with a friend or spouse as banks will view the transaction as a better risk because of the joint income. It is wise to have a legal contract drawn up stating each party's obligations.

Other tips include: When you do shopping, write a list and stick to it; Cut down on outside entertainment and vacations; Let friends and family know that you are saving to buy a home. This way they will understand if your birthday and other gifts aren't as extravagant as they once were; Sell off things that you don't really need or use anymore, such as the exercise bike that has been sitting in the garage for two years; and, Get a part time job and save the income for your home.

"It is not practical to buy a house or aim to buy a house you cannot afford," says Haupt. "A good idea is to speak to the bank and determine what exactly is affordable and stick to it."

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