Reaching that first step on the property ladder is something previous generations took for granted. It was once quite common for couples in their early twenties to purchase their first home with little effort but today, things are a lot different.
With property prices rising significantly more than inflation over the last 50 years and rental costs at an all-time high, it’s never been more difficult to save for a deposit on a home. But that’s not saying it’s impossible. With the right mindset and by following the tips below, you might just be able to save a deposit for your own little slice of heaven.
Reduce your renting costs
If your rental prices are keeping you from saving for a deposit, consider downsizing momentarily into a smaller flat. You could even look for house-sharing or cohabiting options or moving locations to a more affordable area. And then there’s always the option of moving back home with your parents to consider. If they charge reasonable rent, of course.
Cut your expenses
Budget your finances wisely and cut down on extravagances and treats as much as possible to deposit more in your savings. This also means biting the bullet and skipping elaborate holidays for a few years and maybe not going on as many nights out. Hard as it might be to hear, sacrifice may be the answer sometimes.
Explore buying alternatives
Look into buying schemes that help you get on the ladder with a lower deposit. For example, part buy, part rent schemes will allow you to own a share of your home without having to save up a massive deposit. There are other options too. For example, you could take advantage of saving schemes such as the Help-to-Buy ISA.
Get a second income
If your current income isn’t allowing you much room to save for your deposit, explore second income opportunities to give yourself more spending money. Commonly referred to as a “side hustle” in certain circles, second jobs are not looked down upon as much as they once were. Try to turn your hobby into a steady income or look at how much spare “stuff” you have lying around and sell it, perhaps for a tidy profit? The options are endless.
Ask others for help
If you haven’t asked your family for help, then you never know what sort of support they could give. They may simply have not thought to offer it – if you’re lucky, you might have a close relative with a bit of cash to lend you for your home deposit if you ask the right questions at the right time.