Saving for Your First Deposit
One of the biggest challenges first-time buyers face is saving for that all-important deposit for your new home. It is a huge amount of money and depending on your earnings and your situation you may find this a goal that will take years to attain. However, there are ways you can save and get the deposit down on your dream home sooner than you think by cutting back or giving your expenses a major overhaul. Here we look at the best course of action for saving for your first deposit so that you can get the keys to your new home soon!
Make a budget – It seems simple enough but everyone (especially people who need to save for months) should have a budget plan and more importantly, stick to it. Sit down and make a list of what bills you have and extra expenses as well as realistically leaving aside money to save each week/month.
Consider your current situation – If you are renting then it is likely that money is going to be your biggest outlay every single month, but you might consider either moving home or if you are living alone, renting out a room to make extra money. The cost of renting is huge and if you could reduce that in any way, there is an opportunity to save more money each month. Alternatively, you may be able to move home into a cheaper rented accommodation with a home share. Remember you may not want to make these changes, but it offers you a quicker way to get that deposit together.
What about your working life? – Is there an opportunity for you to get a raise in work that could be put aside to raise the deposit money? Or could you move jobs and rent a property in a cheaper location, closer to your new place of work. If you are driving to work could you begin to take the bus/train and save money that way or could you sell your car and bank the proceeds? A lot of people are cycling to work, and this is one way to save money and stay fit too.
Drop some of the fun things – No one wants to give up on living for a few years, but you probably might need to drop the holidays or the extravagant nights out every week. Sure, you can have a monthly night out or a rare weekend away but to save for a deposit there must be some restrictions on your spending. Eating out is another luxury and if you eat lunch in work you might want to consider bringing it with you in order to save money. Buy food in one go instead of doing daily trips to the shop, which adds to your bills. Instead of heading out ask pals to come over or cook at home more. And don’t get us started on avocado and toast..! Though it isn’t something we would advise, drop the two coffees each day and at least reduce it to one and buy a good quality pack of coffee ground beans and a decent percolator. It might not taste as good as your favourite barista coffee, but it will do!
Tell people you are saving for a deposit – It may seem silly but if people know you are saving, they will usually be more supportive and less likely to invite you to several holidays or getaways. If your parents can help you with a deposit that is great, but a lot of people don’t have this option. Keep a clean bank account and try not to fall into missed payments and remember your finances will be examined while applying for a mortgage. You need to show you are responsible and able to manage repayments.
Keep at it, every bit of effort and sacrifice will be worth it when you finally get the keys to your very own home!
To discuss this and other housing matters in Dublin, please contact me directly on +353 (0) 87 937 0896, Derek@VictoriaHomes.ie or check out all of our current developments at www.victoriahomes.ie/
- Posted by newsupdates
- On May 3, 2019
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