How To Save For Your First House Purchase
| Money : Mortgages Recent surveys have shown that the age at which people are buying their first property is going up and up. And for those who don't have the bank of Mum and Dad to access, then the average age at which people are now buying their first home unassisted is incredibly around the age of 37. For many owning a house is just a pipedream and with banks reining in what percentage of property value they will lend - the LTV or loan to value rate - then renting, and ironically not being able to save so much, seems the only option for many. So what can be done to try to improve your chances of getting that first house purchase sooner and buy your own home? Well, the answer is quite simple: 1) Start saving from as young an age as you can. Interest rates will go up and will go down. But whatever happens, time is the most powerful way there is to build money, as can be seen with what pension people have at the end of their working life depends so much on when they started paying in. This is due to compound interest. 2) Be disciplined with all aspects of your spending. It might sound like no fun, but the reality is do you need that £3 cup of coffee each day? Do you need to buy that newspaper for a £1 when you can read most news online? Do you need a four star hotel on holiday when a 3 star would do just fine? Do you need clothes with labels? That flash car? The point is simply to always economise where you can. You can still have fun and have the occasional blow out, but the philosophy is simply to rein in spending where you can. 3) Renting: the biggest loss of money that you could put towards buying your first home will come from the rent that you pay. Therefore where possible minimise what your rent is and you can buy a lot sooner. Ways to do this include living as far from a major city as is tolerable based on where you work (a longer commute may be a pain but can save you a few hundred pounds in rent a month, and getting your own place several years earlier). Secondly try to live with as many people as you can as generally this will lead to a reduction in the rent per person overall.
 Questions about buying a house:
|
|
Tweet this!
