Top Tips For Saving To Buy Your First Home
Let’s face it, saving can be hard and once you know you have a big purchase to save for, it can feel that the figure you’re aiming for is a million miles away. But it doesn’t have to be that way! By following some top tips, you can have your first home even sooner than you think. If you find yourself feeling overwhelmed and not quite sure where you should start, here are some top tips to get you a bit more financially savvy and get on the property ladder with your first home.
1)Know a rough figure that you are aiming for
Once you have decided it is time to start saving for a house, you need to work out a rough figure of what you are aiming for and decide how much you will set aside each month. You will need to sit down and think about the area you wish to buy and what sort of property you would like. Do you want to live in an apartment or a house? Do you need it to be near a train station? The type of property that you are after can be impacted by these external factors and you can find similar properties can be very different in cost depending on the area that they are in. Look at websites such as Zoopla or Rightmove who can tell you the prices of properties that have sold on particular streets and also how much houses and flats are currently on sale for. From this you can use a calculator to find out how much deposit you will need to save up. This will give you something to aim for. Remember that it is not just the deposit you will need to save for, there are a number of other costs involved with your first home too.
2) Make a spreadsheet outlining all of the costs it will involve
As said in the point above, moving house requires you to save for more than just the deposit. Luckily as a first time buyer, most people don’t have to worry about stamp duty as this was abolished in 2007 if you are buying a first property and it is under the value of £300,000.) You will however, need to think of survey fees, any mortgage fees, legal fees and if there is any imminent work that will need to be done to the property. You might need to completely kit the place out with furniture and if you are buying somewhere to do up, you need to check you have the funds to do so. There is no point buying a property with the intention to give it a total makeover if you won’t have the funds to do so, or won’t be happy living in it in the state you buy it in while you save extra.
3) Set a timeline
It is a good idea to think of when you want to have a certain amount of money saved for your first property. This gives you a good point to work towards and you can know if you are on track to save or not. Think of how much you want to save and how much you can realistically put away each month. You don’t want to completely scrimp yourself out if you are working towards a five year plan, as you do still want to enjoy your life, but you will want to be sensible. Calculate the cost of what you need to have saved in a certain amount of time and dividing this by how many months there are before you get there.
4) Think of a side hustle you can start
If you want to have a bit more put away for your house than your current job can accommodate for, think of other ways you can top this amount up. Why not start a side hustle? There are many side hustle ideas out there, it is up to you to find one that will work for you. Why not become a freelance writer on the side? Or if you have a small business such as one that sells art or essential oils, why not sell these on Etsy or a similar site? Ensure you don’t get burnt out as it can be overwhelming working extra on the side. Do it right and it can be a very lucrative idea.
5) Pay off any outstanding debt
Some people think that paying off debt can be negative to their finances as it is a big lump sum coming out at once. Instead this is not true. By paying off your debt, it can put a dent in your finances at first, but you will soon find you have much more money to save or spend elsewhere. Without paying off large interest payments and having the financial burden, you will feel much happier and in a better position. If you do need to borrow for something, why not look at plenti.com.au that rewards your good credit with even better rates?
6) Cut down your spending
One of the main things you will need to do when saving for a house is look at where you have any unnecessary spending and try to cut this. Perhaps instead of going out for lunch every day, make something with what you have in the fridge? Try not to have so many takeaway coffees, and think twice before you purchase new clothes. Set yourself a budget for “fun” spending each month and try to stick to this. That way you still get to buy things you enjoy, but you know what you can afford them and still save enough to buy your home.
These are just a few tips that can help you with saving up for your first home. By following these you will find you are on the road to being able to afford it much quicker. Which tips are you going to try first? Let me know in the comments below!
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One Comment
tat2gurlzrock
We have been saving for a home. These are helpful tips.