The cost of living seems to be flying off the rails at the moment and making many soon-to-be first-time buyers wonder if they will ever be able to afford the deposit or end up buying and living in their dream home.
Although things may look grim currently, there is no reason to panic and put your dreams on hold. Saving for a down payment is still achievable and our experienced estate agents in Newham are here for you, sharing their tips on how to save for your first home in this unpredictable economic climate.
Our experienced estate agents in Newham are constantly supporting first-time buyers, as well as landlords and renters to find the best ways to achieve their dreams and match their budgets with their ideal properties. They are committed to providing the best advice and make it their mission to consistently deliver the best services. To get in touch with them, call our estate agents in Newham today at 0207 055 0441.
What you can find in this article:
- Don’t Waste Any More Time
- Track Expenses and Plan
- Cut, Cut, Cut
- Take Advantage of Available Support Schemes
Don’t Waste Any More Time
The first piece of advice our experienced estate agents in Newham want to share is “Act now rather than later”. What this means is that, if you have decided it’s time for you to buy your first home, you should not delay starting your research on what types of properties match your needs and your budget and saving up for the deposit.
Our estate agents in Newham recommend you start by doing the research yourself or employing the help of an experienced estate agent. Your research should target the types of neighbourhoods and properties that suit your current and long-term requirements and income level, as well as mortgage options and costs.
Be sure to be thorough in your research as this will help you plan better. And planning is the best way to safeguard yourself against mishaps like choosing a home that will no longer work for you in 5 years or signing up for a mortgage you won’t be able to pay off.
Once you’ve narrowed down your options and know what costs are associated with your ideal home and its mortgage, it will be time to start saving for the deposit.
Starting sooner rather than later is just as true about saving as it is about planning. Calculate how much money you need for the deposit and start saving today. Just a little will go a long way to set you up for affording to pay the deposit for your first home.
Plus, once you start saving, you’ll be more mindful of your budget and more eager to find ways to save on current expenses and save more.
Track Expenses and Plan
When it comes to saving money, our estate agents in Newham recommend you start by tracking where your income is currently going. Check what your monthly expenses are, categorize them, and see where you can trim from. The more you are able to trim, the more money you’ll be able to save for your deposit, and the sooner you will be able to move into your first home.
Use classic pen and paper and your bank statements or a specialized app to track where your money goes each day. Seeing the numbers will give you a clear picture of what is eating up more of your income than it should and help you plan how to save more efficiently.
Another tip our estate agents in Newham recommend is calculating a minimum amount to save up each month and setting up an automatic transfer from your current account to your savings account for that amount.
Cut, Cut, Cut
Once you get a better picture of how you spend your money each month and what you probably shouldn’t spend as much as you do on, you can start saving for your deposit more efficiently.
Here’s what our estate agents in Newham recommend when it comes to savings:
- Save on petrol by using a bike, walking, or using public transport
- Save on your groceries by shopping at discount supermarkets
- Reduce food waste by planning your meals
- Cut down on food costs by preparing meals at home rather than eating out
- Save money on energy bills by:
- switching normal bulbs for economical ones
- not using appliances like the dishwasher or dryer whenever possible
- using a lower temperature when washing your clothes in the washing machine
- unplugging your devices when they are not in use
Take Advantage of Available Support Schemes
Once you start saving for your deposit, you will be able to access government support schemes or benefits. Their main goal is to help you reach your required deposit for your first home faster.
Do your research on your own or enlist the help of an experienced estate agent in Newham to see what government schemes you are eligible for.
Take a closer look at first-time buyer schemes like:
- Lifetime Individual Savings Account (LISA)
- Right to Buy and Right to Acquire
- Shared ownership
You can also look into benefits for low-income households such as the Cost of living payment.
Another great option to look into is the Help to Buy Scheme. This scheme supports first-time buyers looking into purchasing a new-build property by helping them purchase a home with deposits of as little as 5%. Some developers also offer additional incentives like Help to Buy Equity Loan or First Time Buyer Boost, offered by St. Modwen Homes.
If you have set your sights on buying your first home, the time is now. Our experienced estate agents in Newham are by your side each step of the way and can help you find the ideal property for your needs and budget. Call us today at 0207 055 0441 to get professional advice and support to achieve your goals.