For a first-time-buyer, getting your own place is probably a dream you aren’t sure how to even realize. The media makes it seem like an impossible dream, and let’s be honest, it might as well be. There are no fast rules on how to save for a house deposit in a year, but if you really want it, you might be able to make it happen.
The younger generations have been accused of sabotaging their chances at home ownership with takeaways, sandwiches and a taste for avocado on toast! This seems unfair when most young people would rack up enough on rent alone to ruin any hope of saving, forget about brunch! Yet there may be some truth to the advice shared in these studies. Maybe getting your money on track is the key to getting enough for a deposit, but beware, you may have to move out of the big cities to save up a realistic amount.
Step one: Put a number on your dream
So it’s a dream, to make it happen you need to start house hunting. There’s no law that says you can’t go and view houses even without the money – and nobody’s going to see through you if you go to view a couple of properties that peak your interest. You then know the areas you should be looking in, and which price range you’ll need to look for.
The average first-time buyer puts a 20% deposit on their first home. So calculate that in when you’re viewing houses and looking at price ranges. There are a few options for you to make that deposit happen, that don’t include the bank of mum and dad (even though it’s nice!). You can buy with someone else, get your parents to be guarantors on your mortgage, buy a shared ownership property that the council owns part of, check out schemes that will help you to buy and more.
Once you’ve sort of figured it out, it’s a good idea to go and sit down with your bank’s mortgage advisor, he or she can put a number on what you need to save.
Step two: Start to keep track of your spending
If you don’t know exactly where your money is going, track it with a banking app. It will help you identify your pitfalls and help you calculate exactly how much you need to save: monthly, weekly or even daily. You can set targets by taking into account your income and expenditure. Like this, you should be able to work out how long it will take you to save enough for a deposit.
Step three: Cut out the little things
Cutting out on your weekly night out could save you a tremendous amount of money, but is it realistic? Socializing and getting out the house to blow off some steam on the weekend is so important. You work hard and you deserve it! But there are some things you can do to cut back on the food and drinks tab.
If you’re a coffee lover, invest in some fun home-brewing options instead of spending lots on coffee in the morning, it all adds up you know!
Step four: Consider making money from your current living space
You may already be doing your best to secure the cheapest living situation, but if there is anything you can change, this is the place to start: Get a lodger to sublet the spare room to or use Airbnb to boost your income. Do check with your landlord first, then use Airbnb to make an extra buck while you’re away.
If you don’t want the hassle, sites like Airsorted will manage the whole thing for you! It may seem extreme, but if it’s possible, living with family whilst you save the last stretch of cash is a good way to significantly speed up the process of saving for that deposit.
Have you been saving for a deposit and if so, how are you doing it? let us know in the comments below…
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