Buying your first home and getting on the property ladder is a rite of passage that everyone looks forward to. However, it’s not always easy to switch from being a renter or living with family to becoming a homeowner. To make sure you’re financially ready to take the next step, take a look at these useful tips and learn how to save the money for your first home:
1. Calculate how much you’ll need
When you have a vague aim of ‘buying a house’, it’s hard to save a significant amount of cash. If you know exactly how much you need to save and you have a clear goal, however, it’s easier to hold yourself accountable. No matter how high the target is, calculating how much you’ll need and keeping track of the figures will make it easier for you to save the funds you need.
2. Create a realistic savings plan
Very few people can save money accidentally, so be sure to have a realistic plan in place! By creating a budget and determining how you can reduce your expenditure, you’ll get a firm idea of how much you can afford to save every month. If this isn’t enough to save a down payment in your desired timeframe, you’ll have the chance to start looking for ways to boost your income or reduce your outgoings even further.
3. Find out what you can borrow
Most people require a mortgage to purchase a property, but this doesn’t mean you have to borrow from high street lenders. There are plenty of loans designed for specific groups, so double-check whether you’re eligible for any particular schemes. If you know how to get a VA loan or a reduced interest mortgage, for example, you might be surprised at how quickly you could buy your first property. This might take a little bit of research but there is plenty of help available, so be sure to make the most of it.
4. Save extra cash
If you’re currently renting a property and you want to get on the property ladder, you may want to consider moving in with family or living with a roommate in the interim. Although this might feel like a step backwards, cutting your outgoings by a significant amount will enable you to save the money you need much more quickly. Even changing your living situation for six months to a year can have a major impact on your finances, so consider all the options when it comes to reducing your outgoings and saving cash.
Buying Your First Property
When you’ve saved enough to put down a deposit on a property, you’ll be eager to buy your new home as quickly as possible. However, finding the right property can take time, so don’t be tempted to rush into anything. By scouring the market and viewing various properties, you’re sure to find a home that suits your needs and provides a great opportunity for investment.