One of life’s toughest challenges is saving up a deposit for your first home and don’t get us wrong, it’s not easy. A couple of barriers to buying your first home include firstly, rent being too expensive that you’re not able to set money aside each month, secondly, not having a defined budget in mind for what you want to save and lastly, often, a common factor for a lot of people is having low disposable income, therefore not being able to save.
We’ve compiled a list of some helpful tips that can help you jump on the property ladder just that little bit quicker. Some of these tips include budgeting whilst others include taking advantage of borrowing schemes.
So, where do we start?
Know how much you need to save. Saving to buy your first home can be daunting, but you must have a clear and realistic plan that makes you feel that it’s a lot more achievable.
Apps and websites to look out for:
Lifetise: Whether your goal is buying a home, having a family, or saving money. Lifetise provides the tools and actions to make it a reality.
Saving app: Nude is the new way for people in the UK to build their first-home fund. Open a savings or investment account, boost your deposit with government bonuses and get ideas to buy your home in record time. All in one super easy to use app.
Set a budget
We’d recommend itemising your money coming in and going out. How much are you able to afford versus saving each month? This will provide you with a clearer and more realistic understanding of how much you’re able to save and what price of house you’re able to afford.
It’s easier said than done, but setting a budget can help you to develop skills in discipline and become more realistic with your spending. Reduce your bills if you can, cut down on everyday spending, after all every penny counts!
Set up a savings account
Once you’ve identified your goal and worked out how much money you need to save each month, it may seem trivial but open a savings account and organise a standing order for a fixed amount will help you to regularly save. For example, saving £200 a month equates to £2,400 at the end of the year that you didn’t have before…it’s all about small milestones.
Save, Save, Save!
Some saving accounts can be tax-free. There are so many to choose from, to see which saving account suits your circumstances set aside some time to research!
Keep an eye on house prices
If demand remains high, house prices will continue to rise, particularly with the stamp-duty holiday ending in June bolstering demand. Check-in regularly online and with your estate agent to keep an eye on the market and grow your awareness of the best times to invest. Another great tool to check on house prices in your local area is to keep an eye on the government's land registery website.
Buying your first home is exciting, and it should be something you enjoy and appreciate - not least because of all the hard work you’ll have put in by the time you pick up your keys. Just keep your eyes on the prize, and you’ll get there.
If you’d like more information on the services we offer, get in touch with one of our estate agents, who would be happy to provide you with more information at hello@reaestates.com.
About Rea Estates:
At Rea Estates, we provide award-winning services to a wide range of clients and we are highly specialised in all aspects of sales, lettings and management.
We sell, let, and manage property across the greater Belfast area and North Down. We also provide comprehensive property investment services, including property sourcing and property procurement, refurbishment and project management, and tenant sourcing and tenancy management. Our property services are entirely bespoke based entirely on the requirements of the client.
