7 tips to save on your house down payment
Are you looking to buy a house but the task seems overwhelming? Getting into the property ladder might seem hard at first glance, as it takes patience and strategic planning. When asking prices seem staggering and you feel you will never reach your target it is time for some strategic saving. Getting the home of your dreams involves many things, however, it boils down to one: will you have the funds for the down payment?
Here are 7 small things you can do to increase your funds towards buying a house.
1. What type of property am I after?
Only by knowing beforehand what you are after will increase your chances of actually purchasing it. Research the price tags and make your first contact with the real estate agent. This process helps you gain perspective on what type of home you can actually afford and increase your knowledge of the market.
2. Open a savings account.
Move away from the temptation to spend by simply setting up an automatic deposit to your savings account. Decide the amount of your take-home pay you want to be routed every month to your savings account and steadily grow your savings.
3. Ditch the overdraft
It is advisable to work on paying off any big credit card debts before diving into the property market. A significant credit card debt might affect your ability to get the type of financing you need or lead to a massive add-up on interest rates of these debts. Deal with any debts beforehand to avoid any unpleasant surprises when you are one step away from your dream home.
4. Appreciate the simple things
Have you thought of cutting down on everyday unnecessary expenses? Managing your day-to-day expenses and controlling the cost of living can quickly save you hundreds. Expensive gym memberships or magazines subscriptions you have forgotten to cancel might be one of these things you are able to sacrifice to purchase your future home sooner.
5. Reward it
When we think of money-saving advice we always think about cutting down on costs and stop wasting money on unnecessary things. Sometimes this is impossible especially if you live somewhere like London, where the cost of living is especially high. Instead of saving money, you can start thinking of adding money to your account via credit card rewards and programs. Some banks reward new clients with discounts and compensate them for purchasing from some of their selected clients. Explore your options and opt for a credit card with cashback options and discounts.
6. Dream big live small
If you are dreaming of buying your own house then you might want to consider moving one more time before finally settling down. Search for homes with lower rent and increase your monthly savings by cutting down on rent payments. There is always the option to find a roommate to share the costs as well as the experience. In the meantime, your savings will grow tremendously.
7. An app
A money-saving app or a budget organizing app are going to be absolutely valuable during this journey to secure the funds for your house downpayment. There are numerous apps that can help you with organizing your money, tracking your expenses, and calculating your taxes and income. Plus, an app will help you track your progress so you get to see in real-time your efforts literally ‘paying off.
Before following these tips, it is essential not to forget to fully assess your spendings and set a goal for a specific period of time. Planning will help you reach your goals sooner and as soon as you set a specific number in mind, the figure will keep you motivated during the process.
If you are looking to get into the property ladder in London or Dubai, our experienced team can help you navigate the property landscape effortlessly. Please contact us on +44 203 888 5555 or +44 (0) 8445 555 555 to book your first free meeting.
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