Sun 26 Jun 2022One of the toughest challenges we face in our lives is saving a deposit for your first home, which really isn't easy especially in today's economy. One of the barriers to buying your first home is paying rent, which takes a big chunk out of many peoples' salaries. Secondly, not having a solid budget in place for what you want to save and a common factor for a lot of people is having a low disposable income, meaning they are not able to save.
We've compiled a list of some helpful tips that can help you jump on the property ladder just that little bit quicker.
Where to start first?
Find out exactly how much you need to save. Saving to buy your first house can be overwhelming and daunting, but you need to make sure you have a clear and realistic plan that will make it a lot more achievable. One app to use is:
Lifetise: Whether your goal is buying a home, having a family, or saving money. Lifetise provides the tools and actions to make it a reality.
Set a budget
Spreadsheets will become your best friend when it comes to budgeting. It’s the perfect way to track your incomings and outgoings, and will give you a clearer and more realistic understanding of how much you can save.
This will provide you with a clearer and more realistic understanding of how much you’re able to save and what price of house you’re able to afford. It’s easier said than done, but setting a budget can help you to develop skills in discipline and become more realistic with your spending.
Check to see if there's any subscriptions you are not using and cancel them and make sure you’re on the best possible broadband and mobile tariffs!
Setup a savings account
Once you’ve identified your goal and worked out how much money you need to save each month, it may seem trivial but opening a savings account and organizing a standing order for a fixed amount will help you to regularly save.
For example, saving £200 a month equates to £2,400 at the end of the year that you didn’t have before…it’s all about small milestones.
SAVE SAVE SAVE!
Some savings accounts can be tax‑free. There are so many to choose from, to see which savings account suits your circumstances, so make sure to set aside some time to research!
Keep an eye on house prices
If demand remains high, house prices will continue to rise, but as there are reports of a recession looming, we can see a decrease in recent months. Check‑in regularly online and with your estate agent to keep an eye on the market and grow your awareness of the best times to invest. Another great tool to check on house prices in your local area is to keep an eye on the government's land registry website.
Buying your first home is exciting, and it should be something you enjoy and appreciate! If you’re looking for your next home and need some property advice, call us on 01788 551111 to speak to our sales team.