These basic hints and tips could get you moved in faster!
For many people, a life goal will be to buy a home. However, when it comes to the money side of things, a lot of people will struggle to achieve this status. It is mainly due to the cost of homes, along with low salaries. It is easy to feel defeated and give up entirely before you even attempt to save up for a deposit to buy a home. But if you consider implementing some or all of these top tips, then the path to owning a property may become easier.
Create a realistic budget
When it comes to saving your money so that you can buy a home, figuring out how to save for your deposit is one of the most important factors. To create a realistic budget, you will need to first look at your financial situation and figure out how much money you have coming in, and going out. This will include everything from your current bills, vehicle costs, and food. After you have calculated all the money that will go out, you will be left with a disposable income. It might be tempting to save as much of this as possible, and while this would certainly help you to save up for a deposit quicker, it is not a realistic long-term plan. Instead, figure out an easy percentage of this disposable income to put away each month and have it come out of your account into a savings account as soon as you are paid. That way, you won’t even see it. When you reach your next payday, if you have still got leftover money in your account, you can then think about putting it into your savings.
Change your lifestyle
If you are thinking about buying a home, but your financial situation is poor, then you may have some lifestyle changes to consider. For example, some people buy takeaway food multiple times a week or have low credit scores, but this does not have to stop them from buying a house. If you feel like this is a situation that you are in, thankfully, all that you will need to do is research how you can change your habits and lifestyle choices so as to put yourself in a better financial situation. This could be as simple as acquiring the skills to cook and prepare your own food for the week, reducing your food costs and allowing you to save a little extra or actively looking out for yellow sticker deals or switching to supermarket saver ranges, every penny you can save can make a difference!
Look for additional help or schemes
Government schemes like help to buy was very popular but is sadly no longer available or shared ownership. Help to Buy was a scheme where the government would help you to save up your money and put in a contribution over a designated period of time. During this time, you will generally not have access to your money, and the money can only be used to buy a home. Shared ownership is another scheme where you will only own a percentage of your home (usually half), but the deposit can be significantly lower, making it a much more realistic option for many people to achieve. You buy a share of between 10% and 75% of the home’s full market value and pay rent to a landlord on the rest. It's a big step up from renting, as you actually own a part of the property, and so every payment made is a step closer to the house being yourswell!
100% no-deposit mortgages have made a return for the first time since 2008, and it means that first-time buyers can step onto the property ladder without saving for a deposit or having a guarantor. First-time buyers must be able to show they have paid their rent on time for the past 12 months to be able to qualify for the scheme, and will still have to show the lenders that they are able to afford the property and that their finances are under control.
Sign up for free credit checking services such as Clearscore or the Money Saving Expert Credit Club to keep an eye on your credit score and credit file, and check weekly to make sure that everything is correct, and if it isn't, raise a dispute with Transunion to get it corrected as quickly as possible; the last thing you need when looking at mortgages is something causing issues with your credit rating!
So, whether you are looking to buy your first home to live in or a second home to rent out and make some money from, make sure to consider these tips. You could purchase a home and renovate it for either re-sale or for renting out, (there is a huge demand for rented houses these days) - and even small touches, such as a Lighted Mirror from Clearlight Designs, can transform the look of a bathroom or a well thought out kitchen with plenty of storage space, can increase your chances of letting or selling your house faster!