Buying your first home is a big achievement, as well as a major financial investment. A lot of people struggle to get onto the property ladder due to the huge financial impact it can have on their day to day living, meaning that the home ownership rate amongst young people has dropped dramatically in recent years.
A lot of people in their 30s and 40s are also struggling to get on the property ladder, due to the rising cost in child care and credit card debt. To help with savings, a lot of first-time buyers use short-term loans, such as bridging loans, to help with renovations or deposits. Saving for your first home and making small savings along the way all add up.
Tips to Save Money on Home
So if you are looking to save money on your first home, here are some handy tips.
Adjust Your Budget
Setting a realistic budget is one of the major steps in saving money on your first home. If you budget too much and end up dipping into those savings each month as you can’t realistically live on the money you have left over, then you’ll end up in a worse financial position than you started in.
You may think that you don’t have much moving space when it comes to budgeting each month, but take a good look at your outgoings. You may find that there are some expenses you can cut out, or at least cut down on. For example, downgrading your TV subscription or taking your lunch to work rather than buying it each day will save a lot of money over the year. Working through your monthly expenses is a vital step when it comes to saving for your first home.
Get A “Side Hustle”
If you spend your time after work sat at home in front of the TV, why not make the most of your time by earning a little extra money? Many people who are saving for their first home often take up a small second job for a little extra cash to add to their savings.
Whilst going to work again after you have been working all day doesn’t sound like much fun, it doesn’t have to be boring. Maybe you have a hobby you could cash in from? Or do you like chatting with people and could work in a local bar for a few hours a night? Having a small side job can help you reach your home goal a lot faster.
Think Out Of The City
Everyone knows that city center living is expensive, but the appeal often outweighs the financial issue for many people. It’s well known that you get a lot more for your money in towns outside of the city. If you are struggling to find a down payment for a small shoebox-sized apartment in the city center, expand your search to a few miles outside of the center.
The majority of towns have great public transport links to allow commuters an easy journey into work, all whilst enjoying the benefits of affordable housing and bigger living areas than what you would find in a city.
Get Different Quotes
If you’re looking at carrying out renovation work on your home, it may pay off to get different quotes from builders or contractors. Quotations can often vary quite considerably, so make sure to read them carefully and don’t be scared to ask questions. If you receive a quote that’s a lot higher than what you were expecting, go back to them for advice. Ask if there is any way to save money, perhaps by completing the work in staggered stages or adjusting the work that needs doing.
The price quoted can often reflect the builder’s workload, so if they are busy they will charge more. It may be more cost effective to get several quotes for smaller jobs that are spread out.
Buy Ex-Display Units
A lot of showrooms offer kitchens, bathrooms and bedroom sets at a fraction of the recommended in-store price. Retailers often update their studios to match the latest trends, so a lot of newer displays are replaced and sold on to ex-showroom companies.
Online sites such as eBay have a lot of second hand ex-display units for sale, but often need a bit of renovating or a fresh coat of paint. Buying your furniture this way can save you a lot of money when buying your first home.
About Natalie Wilson
Natalie Wilson is a freelance writer and enjoys writing about savings and finance and is particularly interested in writing about short term loans, such as bridging loans.