If you believe everything that you hear on the news, you probably think that it’s impossible for first time buyers to save up the deposit for a house. It’s true that house prices are incredibly high and saving for a deposit is so tough, which is why fewer people than ever are buying houses, however, it isn’t impossible. With a bit of forward planning and some strict financial guidelines, you can save up the money that you need to buy your first home. If you think that it’s impossible, here are some of the best ways to do it.
Work Out Your Target
Saving money is always easier when you know what your target is. If you just have a vague plan for saving and you don’t really know what figure you’re trying to achieve, you won’t be able to measure your progress, which is very important when you’re trying to stay motivated. You’ll find it easier to stick to your savings plan if you can see that you’re already 25 percent of the way there after 6 months. That’s why it’s important that you make a few basic decisions about the kind of house that you want to buy. You don’t need to pick out a house but you do need to think about whether you want to buy a new build, like these ones at MakeHomes.com or whether you want to go for an older property. It’s usually cheaper to buy an older property so you’ll save a bit of money initially, but you will need to do more work on the place which could push the price up a lot. If you’re very handy and you can do a lot of the work for yourself then it’s a good option, but if you’re going to have to pay somebody to do it all, a new build is probably cheaper overall.
Rent A Cheaper Place
A lot of people struggle to save for a house because they’re spending so much money on rent. The simple solution to that is to rent a cheaper place. A lot of people decide to move back in with their parents but understandably, a lot of people don’t like that idea. Still, you should consider downgrading and finding somewhere that is cheaper to rent or try to negotiate a reduced price with your landlord. Then you can put all of that extra money straight into your deposit fund.
Cut Out Pointless Expenses
When you’re trying to save money, you need to make some sacrifices and cut out the pointless expenses like new clothes that you don’t need or expensive nights out. That doesn’t mean that you should never do anything for yourself because you still want to enjoy yourself but you don’t need to spend £5 on lunch every day when you could just make it for yourself.
Help To Buy
The Help to Buy scheme was set up to help first time buyers that were struggling to save the deposit on their house. You only need to save 5 percent of the cost of the home which is a lot less than you normally would. You can only use the money that you’ve saved for buying a house as well, so there’s no temptation to spend it elsewhere.
Saving for a house is going to be hard, but it isn’t impossible if you follow these steps.
This is a collaborative post.