Purchasing your first home is an exciting time in your life. Real estate investment is the best way to build equity. You can visualize your ideal home and are eager to take the next step up the property ladder.
Related: Why Millennials are investing in real estate
However, before you can start selecting color schemes and a new sofa, you must first make a mortgage deposit and get a mortgage quote.
Saving for a house is a great way to demonstrate your power to commit to mortgage repayments, and it also helps you develop a useful habit of savings. Savings takes time, but there are steps you can take to make it easier. Here are some suggestions to help you save for a down payment on a home.
Real estate investment: Do research
Doing some research will give you an idea of what is associated with purchasing a home and whether there are any added expenses besides the deposit, such as legal and surveyor’s fees. Another thing to think about is the location. Is it cost-effective, and what do you need from a property in the long run?
There are numerous online resources available to assist you in getting started, ranging from mortgage calculators to obtaining a mortgage quote.
Open a savings account
Opening a new bank account for house savings is a simple way to begin putting money aside to build a downpayment. You can simply open a new account to transfer funds into, or you can open an ISA that meets your needs, such as the Help to Buy ISA for the first buyers.
Budget and plan
Examining your monthly salary and outgoings will provide you with a clear picture of how much money you have left to spend or save each month. You can begin by writing down your obligations, such as bills, adding up the total, and subtracting it from your monthly salary. You’ll be able to see how much money you have left, and you’ll be able to start planning a month-to-month budget based on how much you want to save every month.
Do free stuff
When you’re trying to save money, it may feel like you have to stop having fun, but there’s plenty of free things you can do to significantly lower your spending. Instead of picking up a book, you can go to your local public library and borrow one, try an online workout video instead of paying for a gym, cook at home on a Friday evening instead of ordering takeout, or go for a bicycle ride outside.
Get creative
Consider ways to save money, such as bringing your lunch to work instead of purchasing a sandwich, or shopping at cheaper supermarkets and other discount stores. Sell any old clothes you no longer wear or make homemade gifts for special events. It may not appear to make much of a difference at first, but all the pennies soon add up.
Get expert advice
A mortgage adviser will explain all of your options, including present government schemes, what is cost-effective for you, and everything else involved in purchasing a home. They can walk you through the mortgage process, answer your questions, and help you to understand everything you need to know from getting a mortgage quote and other advice.
It takes time to save enough for the down payment and to go through the house-buying procedure. Mortgage quote advisers can assist you in making the process as simple as possible, and ensure that you never pay more than you need to.
I am a 50-something Torontonian who loves everything about my city. It’s been my home, my playground, for my entire life. I went to school here. I met my wife here. I own real estate here. I love writing about the transformation of my city on the world stage, which hasn’t been anything short of dramatic. That continues on, as I write this. I write on the real estate scene. I write on travel and fashion. I like following the world of luxury watches.
But I love writing about cars – check that, luxury cars, a level of superior, engineering sophistication, high performance and style, that transports you not just from one destination to another but also out of whatever you are going through on a particular day, whatever mood you are in, all to another head space. It’s complete and total exhilaration, head to toe.
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