How to save for a house
Do you feel like your dream house is so close yet so far? It can be a bit daunting when you’re looking into buying a house, especially if you come across properties that are out of your price range. However, not all homes are unachievable, you just need a few tips on how to save money.
Set a Timeline
Having a goal or target in place will give you a sense of direction, you’ll feel more obligated to accomplish this goal because you’ve told yourself “this is what I want.” You’ll be less likely to waste time and instead become more motivated to achieve that target.
Not only will this help encourage you, but it will make it easier to set a monthly budget.
This is where you get your notepads or spreadsheets out as it’s time to work through all your out goings. By doing this you can work out where all your money goes and if there’s any room to cut back and use that money to put into your savings.
Also, this is a good way to eliminate luxury items that are just a bit unnecessary, like buying non branded items or cancelling subscriptions. All these small things add up and the moment you cut back on them you’ll be surprised how much you can save.
Once your outgoings are clean and clear, you can create a monthly plan. Split what comes out automatically and then create a list of daily spending. Not only will this help you gain some perspective, but you can set individual targets on certain things like; going to only spend x amount on lunch daily, or x amount on a Friday night etc.
Good Credit Score
To get a mortgage you’ll need a good credit score, they need to see that you’re reliable when repaying loans. This means, the first thing to do is to clear off any outstanding debts, you can’t save up money if you still have debts eating away at you every month. This also means no late repayments! This will show that you don’t handle your money well and will reflect badly – it’s all about trust.
How much can you realistically spend on a house? To save money for a property you first need to know what your minimum and maximum are. This can be done by using an online calculator or seeing a mortgage advisor. Mortgage advisors will assess your financial situation and make recommendations on the sort of mortgage that’s appropriate for you.
This will give you a clear budget goal and a realistic overview on what you can achieve, making saving a lot easier.
Get a Roommate
If you physically cannot afford a house on your own, consider moving with someone, a family member, friend or partner. This will help alleviate some of the stress that comes from buying a house, as well as allowing you to be a bit more lenient on saving.
Plus, getting a roommate can also motivate you to be stricter with money as you don’t want to let down or disappoint someone.
Buying a home can be intimidating, but with these few tips and guidance, you’ll be able to buy a place in no time.
If you are looking to buy a new home, we hope our tips will help you achieve your goal.
Need general property advice? Please do get in touch with us here.