Climbing the property ladder in recent years has become increasingly difficult with all the house price rises, inflation, interest and mortgage rates skyrocketing as well as the overall economic headwinds. It has become almost unaffordable to own a home and while many choose to rent for the foreseeable future, others may still dream of that home of theirs. It’s definitely not impossible but considering everything you may have to put a pretty strict plan and a budget.
Here at We Buy Any House we will outline the top tips for saving for your house’s deposit as well as things you must consider on your journey towards your dream home.
Set Your Goal
It’s vital that you start by evaluating your own finances and setting a realistic goal for just how much you will need to save. Here you must consider what kind of mortgage you will be taking, where you are planning to purchase it, what the average house price is in that area and what percentage of it your deposit would be. Most people go with something between either 5% or 10% and while the 5% is much easier to achieve, if you can hold off and try to save a larger deposit, you will have higher chances of securing a better mortgage deal. And in this market, a better deal goes a long way!
Set a Realistic Budget
Very often people set themselves very unrealistic expectations which are simply unattainable. However, saving for a house is a bigger deal than simply putting extra money into a savings account for an emergency. You must be much stricter with it and in order to do that, it should be realistic considering your income and the amount you wish to save monthly.
Another important factor here is to set a timeline as well. Knowing by what time you wish to have this goal achieved will help you plan your savings more accurately and strictly.
Review Your Bills
When saving for a deposit, there isn’t a better time to review and sort out all your expenses. Perhaps there is a subscription which you have completely forgotten to cancel or a package plan which you are barely using. Now would be the perfect time to check all of these and make some smarter decisions which will ultimately help you achieve your saving goal.
Start with your utility bills, perhaps you could find a better deal with another energy provider, you could switch from a variable plan to a fixed rate or looking around for a cheaper package deal on your broadband and Internet could help cut your monthly bills at least a little bit.
These are considered non-essential and could be a potential way for you to cut down on your spending. Think of all the memberships you have – it could be anything from a Netflix subscription to a gym membership. It’s important to stay healthy but perhaps you could create a small gym area in your home and cut down in that area. Or you could go to a cheaper plan with Netflix and make sure you don’t have all streaming services such as HBO and Disney paid for as well. Surely you could last with only one streaming place.
There are all kinds of memberships you could’ve signed up for so now is the ideal time to review those and get rid of the non-essential ones.
Reduce Everyday Spending
It may not seem like a big expense at the time – at the end of the day it’s only £3 for a coffee, right? Well, if you combine all the overpriced coffees, the meal deals when you forgot your lunch, your takeaways when you didn’t feel like cooking and the outings with friends where you always spend a bit too much on drinks and fancy restaurants. These are all unessential things which should be kept to a minimum. It’s important to remember that you could still go out with friends and have fun but on a budget!
It can feel rather challenging at times but you should always keep in mind why you are doing this and hold onto that dream home of yours which you could have sooner than imagine if you just restrict your spending for a limited period of time. It will be worth it!
This article was written by a quick house sale company webuyanyhouse.co.uk If you’re wondering “how can sell my house quickly”, head over to our website for more property related information and enquiries.