Saving for a house seems to be increasingly difficult, especially with the rise in property prices within the last few decades.
According to insurance and investments specialist LV= Liverpool Victoria, the average house deposit for first-time buyers outside of London hit £26,224 in 2017. That’s 108 per cent more than it was 10 years ago. Yet salaries for first-time buyers have only increased by 17 per cent in the same time frame.
Here are a few ways in which you can best go about saving for your first deposit…
A fantastic way to avoid paying rent is to house sit your way into buying a house. This involves packing up all your belongings and putting them in storage, apart from the essentials you will need for day-to-day use. There are then sites you can use to find a property to house sit. One example is TrustedHousesitters.
Evaluate if you truly need the property you are renting at the moment. Realistically, could you downsize from a 2 bed to a one bed? Or from a property with 2 reception rooms to 1 reception room. Alternatively, would you be willing to go into a house share where all bills will be split? The short-term sacrifices will be worth it long term!
Anyone who has accumulated any debt will be automatically at a disadvantage as it will directly affect the amount you are allowed to borrow for your mortgage. The amount you can borrow has a direct impact on the deposit, the more you can borrow the less your deposit will be.
There are so many ways you can go about raising funds for your deposit. A few examples include getting a second job at a bar or a local business, taking part in market research and selling unwanted goods online. These can be a massive boost for your funds, without having to make any major sacrifices.
It is seen as the norm to be completely broke throughout your years at university. If you are clever about how you go about funding your years at university, you will be able to save over time. Saving money before university means you put this into a high-interest ISA.
Getting rid of your gym membership is very wise if you are genuinely serious about saving every penny you can. There are so many ways to work out and keep fit that are free! A few ideas include fitness apps, free public tennis courts and running.
Making your own packed lunch rather than splashing at your favourite cafes could help you save quite a considerable amount of money. You can spend less than £1 on your lunch if you do it correctly, rather than a £3 meal deal every day! In our current times, there are apps that exist where people share, give and collect food for free, one example is Olio.
This is a major one and it really is the last resort, but you’ve got to do what you’ve got to do! It will only be a short term move and it will help you save massively. If not, your parents you could turn to another family member whether that be a sibling, cousin or aunt.