How to save for your first home whilst renting.
Shocking research conducted by the Association of Residential Lettings Agents has discovered that the majority of first-time buyers in England will have already spent a whopping £52,900 on rent.
For those who are just starting to rent now, they are estimated to spend £64,400 by the time they come to buy a home. The cost could even be higher with location playing a big part of the cost.
The rising cost of rent is becoming a big problem in this country with young people spending the majority of their income on it. This is a huge barrier when it comes to getting yourself on the property ladder.
Here’s how you can save for a home whilst renting.
It’s not easy to save for your first property whilst renting but it can be done, especially if you follow some of these tips to get you on the property ladder faster.
Set up a standing order
Find out how much you can afford to put away to save each month. Once you have this sussed you can have a standing order set up for free so it is automatically transferred into your savings account each month. You’ll soon get used to being without it.
Haggle on your big bills
By approaching your energy, internet and phone bill providers and asking for cheaper deals, you could save £100’s a month on your outgoings. By threatening to switch providers they will almost always move you onto a better deal in order to keep your custom. CLICK HERE to visit my price comparison page to find out what better deals are out there for you.
Make sure you are as strict as possible with your budget and strip back as many luxuries as possible to really keep yourself on track and help yourself to reach your goal quicker. Make a list of all of your expenses and outgoings, this will make it clear to see where exactly your money is going each month and where you can make cuts. It may be difficult going without the finer things in life for a while, but it will be worth it when you start seeing your savings pot fill up.
Choose your area wisely
Remember location is a huge part of the cost of properties with London having the highest property prices and the North East having the lowest house prices. This is especially something to think about if you are fresh out of University and have no other ties.
CLICK HERE to read the top places in Britain where you can afford your own home.