It can be really difficult for the younger generation today to get onto the property ladder. Mortgages are harder than ever to get and you need a decent deposit to put down. With house prices being what they are, the deposits required can be quite daunting. There’s no need to be scared or put off though, there are plenty of ways you can save enough money to get yourself onto the property ladder sooner than you think.
Go through your income and outgoings with a fine-tooth comb and work out just how much you need to live on comfortably and set a budget and stick to it. Cut out unnecessary spending where you can, take a coffee to work with you rather than buy one when you get there and cut out your gym membership in favour of going for a run and a workout at home. Meal plan and don’t waste food. All the little savings will soon add up.
Earn More Money
This sounds obvious but the more income that you have coming in, the more you can save. Consider getting a second job or asking for a promotion and pay rise at work. You can also make some money on the side of your main job by setting up a small business or even just by selling things that you don’t need on online selling sites such as Facebook and eBay. Anything extra that you manage to make on top of what you need to live on can go straight into a savings account and will help you get to your end goal quicker.
Look into different lending options
Take a look at different mortgage options. Some have better deals and some require different percentage deposit amounts so you might be able to get a better deal than you think. You could also consider borrowing some of the deposit money from family. Quite often parents are more than happy to help with a house deposit, especially if their own mortgage is paid. SunLife has some great resources on their website if they wanted to find out how much their house has increased in value since they bought it.
Use visual rewards
Work out how much you can save each month and how long it should take you to save enough for the deposit. You can then make up a spreadsheet or pretty checklist when you hit each monthly target. Pop it on your fridge or somewhere you can see it often to give you the continued motivation to stick to your budget. If you go over your savings target each month even better as you’ll get to the end goal quicker.
Adjust your expectations
It might be that you have to consider living in a cheaper area or buy a house which needs some work. Don’t let this necessarily put you off as you can always add value to your property and continue saving to look to upgrade and move on in a few years time. At least in the meantime you won’t have wasted your money on rent.
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