Buying your first home, whether you’re doing it solo, with a friend or with a partner is an exciting step to take. But the process isn’t easy. There are so many costs to consider when you’re thinking of buying your new home.
Not only will you need to think about the cost of the property itself, but you’ll also have to keep in mind how much a survey can cost, any legal fees and other costs associated – such as the moving process itself.
If you’re thinking of purchasing your first home, here are some top tips that you can use to help save for it:
Work out Your Budget and Timeline
The first step of the process is to work out your budget and your ideal timeline. You can do this by spending some time looking at various properties in your chosen location either via sites such as William Pitt Sotheby’s Realty or by browsing estate agent’s windows. Then, take a look at your finances and work out what mortgage you can get before planning out your ideal timeline in which you will purchase the property..
When you’re looking to get a mortgage, you’ll have to think about how much you need to save for a deposit, along with whether you can afford the monthly repayments.
Start a Savings Account or ISA
To help you save every month, consider starting a savings account that you put regular payment into every payday. But keeping a savings account away from your other current accounts, you’ll be able to save more effectively and won’t be tempted to spend excess money. When you’re ready you can then use this money towards a deposit or as part of your monthly mortgage repayments.
An alternative to a savings account is an ISA. Although you can no longer apply for a Help to Buy ISA, you can still apply for a Lifetime ISA. This allows you to save some money whilst knowing that the government puts 25% of what you’ve saved in as a bonus. If you’re unsure as to which savings account or ISA is right for you, it’s important that you seek professional advice.
Sell What You Don’t Need
If you want to get a little extra cash that you can then put into your savings, why not consider selling some items that you don’t need. Whether this is clothes or home items on a site such as Shpock or eBay, it will give you that extra bit of money that could make all the difference to your deposit.
Cut Down on the Luxuries
If you frequently eat out, travel or spend a lot on other expensive things, now is the time to try and cut down so that you can save for your first home
This doesn’t mean that you have to completely stop your social life. Just that you cut down on some of the luxuries so that you can save more effectively each month. This will make the dream of owning a house come to fruition far quicker.