It’s an unfortunate fact that many young people today are destined to stay on the rental market for the rest of their lives. From the rising cost of rents, falling wages and low interest rates, it can leave us with a very tight budget and it will be difficult to find ways to save enough money to pull together a deposit. As a renter, it can be difficult to feel fully settled in a home, and with all the restrictions placed on your lease, it can also be difficult to make a house a home. If you’re determined to get on the property ladder and don’t have rich relatives able to give you a helping hand, you’re going to have to make some sacrifices and
Get to grips with your finances
If you don’t know where your money is going on a monthly basis, then you won’t be able to identify areas where you can cut back or downsize. Try keeping track of your finances for a month using a personal finance app. You’ll soon realise that your daily flat white is adding up to a black hole in your finances. It’s much easier to spot areas for savings when you understand just how much you are spending every week.
Trade nights out for nights in
Once you’ve got to grips with your finances, you’ll also likely identify that going out for dinner and drinks is costing you a small fortune every month. Obviously, giving up socialising just to be able to afford a house isn’t going to be an option, but you can find ways to make this less costly. Invite your friends over for a night in with dinner and drinks and you’ll soon see the savings stacking up.
Cut your transport costs
If you have a car or rely on public transport, you could be wasting hundreds per month. If you can find a way to cut your transport costs, that money could be going directly into your savings account rather than on getting around. Find out if your company offers a cycle to work scheme, or just pick up a second hand bike and you’ll soon be saving hundreds every month. You can kill two birds with one stone as you can probably cancel your gym membership.
Downsize your apartment
If you’re in a flexible lease, it might be time to start looking around for a cheaper option. If you have two bedrooms, consider downsizing to a one-bedroom place or even a studio. If you’re cycling to work you can probably move to an area away from main transport links, which will also make your rent much cheaper. You might not be living in your dream apartment or house, but you will be working towards it, so it will be much easier to deal with the small garden or dingy bathroom.
Save money on the process
Many people underestimate how expensive the process of buying a house can be. From solicitor fees to the added taxes such as stamp duty. Getting clued up on the process in advance is the best possible way to make sure there are no unexpected costs that sneak up on you. Not many people know that you can shop around for conveyancing quotes, and it can be much cheaper than choosing the solicitor recommended by your estate agent. At this point, it pays to be savvy. Don’t take the first quote you get as often estate agents try to get a bigger margin for themselves. Always make sure you look around and if you do seek the help of a solicitor, look for a local one, so if you’re based in Manchester, look for solicitors that specialize in conveyancing in Manchester – that way you’ll save money and get an accurate deal based on professionals that work in your area.