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Tuesday, August 21, 2018

Trying to save for a house deposit? Read this first!

Being able to buy a house is difficult, especially when saving up the down payment can be quite challenging. Here's some ideas from a reader with some radical ideas to save money for a down payment.



It’s true that the cost of renting a property matches that of paying a mortgage. And with the cost of living going up, saving can seem like a constant uphill struggle. Many of us are confident that we can pay out a monthly mortgage payment – we’re paying the same if not more in rental costs right? But it’s the illusive deposit that so many of us struggle to scrape together, leading us to wonder whether we’ll ever own our own homes.

So what can you do to help speed up the saving process? Here you’ll find a few helpful hints, tips and advice on how you can move the process along. Happy saving!


Sort out your debts

It might seem like a bit of a backward step but paying off what you already owe will not only stop your monthly saving from being too thin but also improve your credit rating for when you finally head to the bank to discuss a mortgage. Having debts hanging over you often feels like dragging a weight around, especially if you’re beginning to feel a little overwhelmed by it all and struggling with payments. The answer? Speak to a company who understands debt; companies like Credit Fix can go through your debts with you and help arrange a monthly payment with your creditors to get you back on track and hopefully saving for your first home again in no time.

Stop Renting

Renting prices have massively increased in the last few years, leaving many renters with less and less spare cash in their pockets once all the monthly expenses have been paid. So, if possible – consider no longer renting. Even if it’s just for 6-12 months, you could save a fortune if you forgo your own space for a little while. There are a few options here:

Move back home.

Of course, this isn’t possible or appropriate for everyone – especially if you have a family or if they live too far away from your job etc. If this is an option, then speak to your parents, discuss how much rent you could pay them and for how long you could stay, how you’ll divide the household bills, chores etc – if it works out and everyone is happy with the arrangement you could save a considerable chunk of a deposit within 12 months.

Get a cheaper room

Do you need an entire flat or house to yourself? If you have no dependents consider joining a house share or renting a room from a friend.

A lodger

Or if you have a spare room, consider letting it out to a friend or advertising it locally. This is a great way to subside rental costs and put away your savings for your house fund.

Downsize

Even if you’re living with your partner and children, downsizing to save money is a popular solution for many families. Do you need that extra room for the office? Are two bathrooms necessary? Take a look at what’s available in your local area and see how much you could save.

See my disclaimer.

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