Most people dream of eventually owning their own home.
But it takes a lot of hard work and saving to get there. This can feel overwhelming and exhausting. Particularly if you want to make a move sooner rather than later.
Try these tips to help you speed up saving. Could you make your dream a reality sooner than you think?
Determine your savings goal
The amount you wish to save will be determined by the value of the property, the timeframe you have, and the percentage of downpayment you want to put make.
Generally, people want to put down around 20%. Putting forward a high down payment can save you money in the long run and get you a better mortgage deal, so many people choose to wait until they have a decent sum.
When setting your goal, take into account what is realistic. If you have a lot of other monthly commitments, like insurance or loan repayments, you might not be able to save as much.
Learn to budget
Examine your current financial situation and see where you could stand to save money. Many people saving for a house eliminate eating out, takeouts, and other luxuries. You could also take lunch into work each day.
Other ideas include switching to a different energy provider that can get you a better deal, or trying to find ways to reduce your phone bill. You can use budgeting apps to make it easier to keep track of your finances.
Try automating payments into your savings account to reduce the temptation to spend. It helps if you set up the transfers for payday, so you don’t have a chance to miss the money in your main account.
Pay off your debts first
Some people rush ahead to save for a property while still saddled with debts. But paying off at least some of those debts will leave you in a much healthier financial situation so that you can save much more.
Plus, your monthly outgoings can affect how much of a loan you can secure, so bringing your debts down might be a good idea.
Find cheaper accommodation
It can be hard to make savings when you already have significant outgoings. For many people, rent is the main drain on their income – particularly in large cities.
Finding more affordable accommodation will speed up the process of saving, meaning you could move into your home quicker or save more money within your chosen timeframe.
Some people have family or friends who are happy to give them a room for low or zero rent for a set period. But another option is to try less conventional rental options.
Depending on where you live, you might be able to find houseboats, trailers, campervans, or even converted shipping containers that provide affordable housing.
Sometimes it’s worth living smaller if you know it’s only for a short period, and you can see how much you’re able to save, although this isn’t for everyone.
Once you’ve got enough savings in the bank, it’s time to make a home loan application. Once you’ve secured home loan pre-approval, you can start searching for your ideal property. The end is almost in sight, and you could soon have the home you’ve been dreaming of.
What are you doing to save for your first home faster?