Many people consider buying a home before 30 to be beyond their reach. It is harder than ever to get onto the property ladder, but with some planning, careful saving and dedication, it is possible. You should make a thorough plan of your finances and be ready to make some sacrifices.
Move Back In With Your Parents
If you can, moving in with your parents is an excellent way to save money. Explain to them that you are saving to buy a home and see if they will let you live there rent-free or low rent.
Choose A High-Interest Savings Account
Shop around to find a savings account with the highest interest rate. You should look for an account that offers 3 – 5% ideally. You should keep your savings separate from your monthly spending money.
Cut Out Unnecessary Spending
You should limit socializing, eating out and clothes shopping. Each time you are tempted to buy something unnecessary, put that money into your savings account instead.
Track Every Penny
You should know where all of your money goes each month. Use a budgeting app or budget template to record what you spend and identify where you can save.
Consider Low Deposit Mortgages
Look into low deposit mortgages like FHA loans. These allow you to get a mortgage with a deposit of 3.5%, making it easier to buy your home before 30. Check out this information on FHA from the Home Loan Expert for more details.
Switch From Brands To Generic
You should cut costs on your regular spending by switching from branded goods to generic. Most food products will taste the same, and you can make significant savings this way. Consider doing this with most items on your grocery list.
Go Thrift Shopping
If you need new clothes, thrift shops can be the perfect place to find a bargain. Only replace items if you need to, and shop around to find high-quality replacements in thrift stores.
Choose The Right Location
You should choose a location you can afford to buy a home in. Do some research into property prices in different areas and visit them yourself to explore. Decide if the neighborhood, amenities and transport links are suited to your needs.
Become Debt Free
Pay off your debts before applying for a mortgage. You should pay more than the minimum amount on credit cards or consider consolidating your debts into a lower interest loan.
Consider A Smaller Property
Buying a smaller property requires a lower deposit which will get you on the property ladder sooner. You should look into apartments and smaller houses if you live alone. A smaller property will have lower monthly repayments meaning you can save more to move further up the property ladder.
Move Up The Career Ladder
You should have a set career path and work to move ahead. Take a course that can improve your employability and apply for jobs with higher salaries or greater progression opportunities.