Budget to buying your first home

21/04/2017

Buying your first home can be a daunting prospect. Many young people have completely given up on the idea of homeownership, as the expense involved can make it seem an impossible dream. But with a bit of careful planning, home ownership could be within your reach, and there is help out there if you have your heart set on buying your own home.

Look after the pennies…

As the old saying goes, look after the pennies and the pounds will look after themselves. If you want to buy your own place you will need a deposit, so start squirreling away as much as possible now. Making small changes to your lifestyle can make a big difference over time, and you might be surprised at how much you can save up if you are disciplined. Swap your daily Starbucks for a flask, take your own packed lunch to work, and swap nights out for nights in with friends and a good movie.

Embrace the vintage trend

If you are a shopaholic and can’t resist buying new clothes, try scouring the local vintage fairs, flea markets and charity shops for some bargain fashion finds. It will cost you far less than buying new, and with a bit of creative flair you can customise items and create unique stylish pieces for very little cash.

Supermarket swap

Budget supermarkets are gaining market share these days and this is because they are selling very good quality groceries often at half the price of the big name supermarkets, so if you haven’t tried the likes of Aldi or Lidl yet, give them a go, you might be pleasantly surprised to see how much you can save without compromising on quality.

Help to buy…

There are several schemes that could help you save up faster, and a help to buy ISA could be a great way of getting you on a fast track to saving up that all important deposit. The help to buy ISA is a Government scheme, where your savings will be boosted by 25%, so for every £200 you pay in, you will receive £50 from the Government, up to a maximum of £3000. Many banks and building societies offer these, so speak to your bank directly or contact an independent financial adviser to find out more.

(Related article: Help to buy ISA. How does it work?)

Manage your expectations…

You might need to reconsider where you want to buy your first home if property prices in the area of your choice are out of your reach. Try to keep an open mind, find out which local areas you can afford, and if you are not familiar with them, do some research. Visit the area, look at the amenities on offer, and you might be pleasantly surprised at what you find. You could find that your money goes much further in terms of the size of property you can afford, and you might discover some hidden gems that you never knew existed.

Buddy up…

If you have your heart set on a property that is financially out of your reach, you might want to consider buying with a friend, family member or partner. Alternatively you could explore a shared ownership scheme, where you purchase between 25% and 75% of the property with a mortgage, and pay rent on the remainder.

For more help with buying your first home, why not get in touch?