A "Propery Reporter" article published today says ask anyone who is trying to get their first foot onto the property ladder what their biggest hurdle is and they'll all say the deposit.
Getting on the ladder isn't easy without the back up of a hefty deposit. For many, this means moving back in with their parents to save money. However, that doesn’t always have to be the case, and first-time buyers have been sharing their tips on how to save for a deposit while living independently.
In the last year, homeownership among millennials (25-34 year-olds) reached 41%, though the average age of first time buyers was 33, showing that buying a first house is a challenge for young adults. With the average graduate starting salary estimated to be around £23,0002, saving up for a house can be easier said than done.
For those who can’t (or don’t want to) move in with Mum and Dad, regulated property buyer, Good Move, has crowd-sourced tips from three young people who have bought their first homes in recent years whilst living on their own. Below, they share their best money-saving tips to raise a deposit without having to move back into your childhood bedroom.
Dan Rice, 27, from Winchester says:
1. Get a slow cooker and start batch cooking. It’s a great way to save money by cooking in bulk and it also saves time as you won’t have to cook every night. Plus, coming into the smell of home-cooked food will banish the temptation for a takeaway.
2. When you get a pay rise, put 50% of the extra money into savings automatically each month. Put another 25% of the increase into your pocket money funds and the final quarter into upping your lifestyle. It makes saving easier and rewards you without having to dip into savings.
3. Look at all your subscriptions and search for cheaper alternatives. My partner and I saved £170 a month by changing gas, broadband and electric, and then did the same again 18 months later and saved an additional £40 per month.
Charlotte Taylor, 28, from Leeds says:
1. Most banks offer cash incentives for switching your account to theirs. Shop around and work out which bank is best for you. You’ll get all the benefits of the new account, as well as the new member cash reward.
2. Cancel your gym subscription and join a Park Run instead. There are also loads of YouTube workouts, as well as great free apps that can track your progress.
3. Take a digital detox. Deleting Instagram and other social media will stop a lot of temptation and FOMO (fear of missing out) spending - and it will probably make you happier too!
James Taylor, 31, from Manchester says:
1. Use your skills to earn money on the side with sites like Upwork, Fiverr and PeoplePerHour. I was able to find copywriting opportunities as a way to top up my deposit.
2. Take advantage of the Lifetime ISA. The interest I gained from it paid for my solicitor!
3. This isn’t for everyone, but I started a couple of blogs which I was able to get traffic to and monetised the sites with affiliate links and ads. These blogs ended up earning a few hundred pounds per month, which went straight into my deposit savings.
Ross Counsel, Director at Good Move, says, “For those who are lucky enough to be able to save money by living with their parents, this can be a fantastic technique to quickly save for a deposit. Not everyone is in this situation, however, so hopefully, these tips will go some way to helping people raise money for a home while living independently.”
Whilst these ideas are all fantastic in their approach, of course, it may be prudent as well, to seek advice from local Estate Agents, such as our own Williams & Donovan offices in Hockley and Benfleet, who will be able to put potential First Time Buyers in touch with expert advice from independent mortgage advisors.