The road to owning your own home can be daunting, especially when it comes to saving for the mortgage deposit. But don’t worry, the seemingly impossible goal of owning your own home is completely attainable with the right approach, mindset, and, of course, our expert advice. In this article, we asked the leading East London estate agent about the best strategies for saving for a deposit.
Step One: Start A Plan
First, you must establish a clear goal, budget, and timeline if you want to save money. To do so, consider the following key questions: What type of property are you looking to buy? What are your options for mortgage repayment? What is the most money you could possibly save each month? What would a deposit of 5 – 10% of the purchase price of your desired property cost? What are your monthly mortgage payment comfort levels? Once you’ve got the answers, you can then start properly planning how much you want to save each month. Oh, and if you haven’t already, we highly recommend separating your housing funds from your daily expenses by opening a separate savings account.
Step Two: Look to Your Daily Life
It’s true – Every little helps! Very small changes to your daily spending habits can massively help you save. As an example, consider the £3.50 you might spend daily on a meal deal at lunch. On the surface, it may appear insignificant, but over the course of a year, a £3.50 meal deal every workday adds up to around £900 – money that could be put directly towards your house deposit. Instead, start packing your lunch at home and put the money you save straight into your savings account. Instead of buying coffee at a café every day, bring your own into the office from home in a reusable flask. Reduce your spending on eating out, entertainment, and shopping wherever and whenever you can.
Step Three: Reduce the Cost of Your Rent
If you can, try to cut your rent costs wherever and whenever you can. While it may not be as simple as packing your own lunch every day, it is definitely an option you should consider seriously. You could consider downsizing temporarily or looking for more affordable housing choices. You could even move closer to your place of work, which means you would be saving money on the commute and on monthly rent.
Step Four: Boost Your Income
We’ve talked a lot about saving money, but why not think about increasing your monthly income? The more money you make each month, the more money you can put into your savings account. You could look into gaining a part part-time job like bartending, babysitting, or any flexible hospitality roles you could fit into your schedule. You could even do freelance work from the comfort of your own home in the evenings. The new digital age offers a plethora of remote work opportunities that can significantly contribute to your deposit fund.
The path to your dream home entails careful financial planning and strategic decisions. Remember that every pound saved is a tangible step closer to making your property ownership dreams a reality. Contact Halls Property Group today to learn more about how to save money for a house deposit.