There are many different types of property available in the United Kingdom, as the housing market is quite diverse. As with everything on the market, each type of property serves its purpose, depending on various factors. This includes how many people would live in the house, and how much maintenance cost you can bear, among other things.
Another thing that might be of paramount relevance to property buyers is that they should be able to save as much money as possible to pay for the house! According to the House Price Index from Halifax, there was a growth in the annual UK house price of 10.8% in February 2022. This also translates to a rise in house prices by £44,138 since February 2020.
Thus, now it is more important than ever to focus on saving enough money to be able to buy a house. In this article, we will take a look at seven ways in which you can save up for your property.
It can be confusing for first-time buyers to navigate across the property market and find the best option for them. It all comes down to careful planning and precious advice you can get. If you are based in and around Streatham, you can opt for estate agents in Streatham to help you out with your property deals.
Some Tips To Help You Save Up For A House
House prices in the United Kingdom are set to rise by an average of 13.1% in the upcoming 5 years. This is due to a stark improvement in the business and economic situation here.
So you will have to find ways to comfortably fit the expenses of buying a house in your pocket. Owning property is no mean feat, but it should not come at the cost of causing bankruptcy!
Follow these seven tips to make headway in saving up for your property deals.
Do a Thorough Research Before Starting Off
Before you start checking out the listings, you must take a look at the prevailing property prices in the area. You can easily find out the asking rate from sites like Zoopla and Rightmove.
With this, you will be able to chart out a mental map and estimate your budget. This will also help you to roughly calculate the amount of your initial deposit. Apart from the deposit, other expenses which will come your way include survey fees, legal fees and mortgage rates.
Spend Wisely, And Boost Your Savings
This is somewhat of a no-brainer when you set out to buy property. The first steps to climbing onto the property ladder are the most daunting ones. Living costs these days are higher than ever before. Thus, you will have to cut a few corners in your regular expenditure to make ends meet satisfactorily.
You should try to compartmentalise what is essential, and what is a luxury in your life. For example, if you spend £3 on a coffee every morning for five days a week, you spend a total of £780 a year! As they say, each drop makes up the ocean. If you wisely utilise this money elsewhere, it will be much more beneficial to your financial condition.
By applying for a mortgage, you will be able to clean up your finances in this manner. Assess your income and expenditure, and identify areas on which you can cut down.
Try To Cut Down On Other Bills
Now, this is something that might not be feasible for everyone, but one can consider this quite a useful tip. Here, we are not talking about the luxuries which one can curtail; instead, we are talking about the essential bills themselves, like electricity bills and rent.
If your landlord allows this, you can switch to a cheaper energy provider. Just for the span of a few months, you can try to move into a residence where the rent is slightly lower.
You can also try and move in with your family members or close friends. Another thing you can do is to find a roommate to share the costs of living. Any major packages which you have subscribed to, like your broadband and cable, can be reconsidered based on how much you utilise the services.
Research On Government-Backed Savings Schemes
The Government also backs first-time property investments through various schemes such as the Lifetime ISA account, and the Help to Buy Equity Loan.
Check out whether you are eligible for any of these schemes. If you are, then apply for them as soon as possible. This additional help will help you a lot and take a considerable load off your shoulders.
Find A Suitable Savings Account
Various savings accounts will provide you with great returns on interest. Check out the different types of accounts, like zero-balance regular savings accounts, easy access savings accounts, notice accounts, etc.
This will help your savings pot to grow, and for you to be able to easily stow away this money without it disturbing your regular finances.
Set Aside A Fixed Amount Each Month For Your Property Bills
This is another crucial step one can use to add to their savings. Just like a rainy day investment, transfer a fixed amount of money into the savings account at regular intervals, just after you receive the paycheck.
This will induce a higher level of financial discipline. You must shift away from this money before utilising the salary because putting it off might result in you overspending and not having enough money in the end.
Passive or Extra Income
A little bit of additional money does not hurt when you wish to buy a house. If you already own a house, you can lease out the property to generate at least a minor income from that. Otherwise, you can take up new ways of earning money, such as a part-time job.
On An Ending Note
It is a common practice among estimators to gauge the development of the property market in the future through projections. These approximations are often incredibly close to how the market does turn out a few years later. Do take a look at these as well before you set out for property deals.
So in short, do a good deal of research before you initiate any purchases, to make sure that you get the best deal possible for the property. Our tips will also help you to considerably save up the amount you need to shell out, resulting in a wiser investment.
With any financial and property transactions, there come many things which you need to legally sort out. We advise you to consult professionals with experience in the property market and make good use of their recommendations.