For most of us, buying a property is the single largest purchase we may ever make in our lives. Buying a property often involves taking out a large loan and therefore being able to put down a significant deposit can save you money in interest and repayments.
But how are you supposed to save up such a huge chunk of money? Here are a few ways to save for a deposit.
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Move home for a while
One day you will live in Meriton Apartments but to do so in the future, for now you need to swallow your pride and consider moving home. For many first-time buyers, the only way they can save for a deposit is to stop renting, and this means looking for much cheaper accommodation. Most parents understand the struggles faced by children when it comes to getting on the property ladder and so consider a short stint at home with little to no rent to allow you to save what you need much more quickly.
Downsize or share to save money on rent
If moving home is not an option and rent is still eating up the majority of your income, then consider downsizing or moving into shared accommodation to cut the cost of your rent. Downsizing or moving into shared accommodation can also cut the costs of other household bills such as heating, water, and electricity.
Start saving as early as possible
The earlier you start saving for a deposit the better, and really most people don’t think about their deposit seriously until they’ve missed their golden window of opportunity. If you can start saving for a deposit earlier when you have less outgoings you will have already put a dent in what you need to save.
Borrow money from your family
If your parents or family are willing, then a family loan could help you to buy a property sooner than you would have been able to if you were left to save yourself. Sit down with your family and talk through whether they are in a position to help you and what you would need to pay them back to cover the cost of their loan.
Sit down and assess your outgoings, what can you afford to lose in order to put more aside for savings each month. The key to a successful budget is to be realistic, and be sensible in your estimates of what you need – this doesn’t mean that things will be easy, you may need to make some cut backs to make the savings you need.
Make your savings work for you
Saving gets a little easier when your savings account is also working for you. Open a savings account with a good interest rate to help you reach your overall savings goal a little faster.
Consider shared ownership
If saving for a deposit is holding you back, you may find that shared ownership is a more affordable way to get on the property ladder. You will still need some form of deposit but this will often be only a percentage of the property value depending on the percentage of the property you own.