How to Save For Your First Home
With the cost of renting at an all time high, buying your first home might seem like a wishful fantasy. Here’s some top tips to help you save for a deposit and make your first move towards getting on the property ladder.
Move Away From Renting
If moving in with your parents is an option discuss the possibility with them, it could allow you to save £££’s a month towards a deposit on a house!
If you have friends that have a spare room to let, it is worth looking at living with them. Moving into a shared house is usually cheaper than renting alone, giving you the chance to save up for a place of your own.
Because of how ridiculously high rent is today, monthly mortgage payments can sometimes work out cheaper than monthly rent payments (how ridiculous!) so you could look into the possibility of getting a mortgage to pay for that first home!
Budget and Save
Do you know how much you earn and spend each month? If your answer was anything but yes then you need to change that! Consider tracking your finances on a spreadsheet or with a tracking app.
Cut your bills. When was the last time you checked to see how much you were paying for gas, electricity, broadband and groceries? If you haven’t switched energy provider for 2 years or more you really should consider switching to a provider like Bulb, they’ll even pay you £50 for switching and cover any cancellation fees! To cut the cost of groceries, I claim £100’s worth of free food with various apps, coupons and offers!
Look into a savings account. When I decided to save for a house I opened a Help-to-Buy ISA. When you save money into a Help to Buy ISA the Government will boost your savings by 25%! So, for every £200 you save, the government will reward you a bonus of £50.
Boost Your Income
The most productive way to move towards buying your own place is to increase your income! Is it time to request a pay raise? Could you ask for extra hours? Is there a side hustle you could manage alongside your job?
There are tons of ways to earn more money including part-time work, survey sites, task apps, mystery shopping, reselling, and even blogging! Find out which side hustles are right for you by visiting my side hustle page.
Do Your First Home Research
Do you know what kind of home you want… or more importantly, do you know what kind of home you can afford? You may need to make compromises and remember that this is your FIRST home, you can always upgrade in the future when you’re in a better financial situation!
Don’t forget about the hidden expenses! If you’re taking out a mortgage you’ll have to pay a loan origination fee (this is what you pay the lender for doing the work involved with making the loan). If you’re working with a real estate agent there’s a fee that comes with that too! When you purchase a home, you sign up for several new insurance requirements. Buying a home can be a good investment, but make sure you understand the fine print costs, fees and taxes involved.
Saving up for that first home isn’t easy but decreasing your bills, budgeting better, increasing your income and doing your research are just some of the steps you can take towards owning that first home!