Small Sacrifices to Become a Homeowner

  • What you need to do to own your own home
  • Easy ways to save big money for a deposit

Are you a first time buyer looking to buy your first home?

Does it all seem pretty daunting?

You can succeed by making small but effective sacrifices to amass a house purchase deposit.   

Here are 6 really easy sacrifices you can make…

1. Go back to living with your parents

2. Live with another relative or friend

3. House share

4. Rent somewhere cheaper

5. Sell your car

6. Sell a valuable asset

1. Go back to living with your parents

A great way to add a large sum to your deposit pot is by moving back in with your parents if at all possible.

Say you are renting at £800 per month at the moment. If you move back to your parents for 12 months, that is a saving of £9,600 over a year. You would also save on council tax and other household bills.

You may want to make a contribution to your accommodation costs even though it is your parents – and that would of course marginally reduce the total amount you save.

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2. Live with another relative or friend

An alternative to moving back to your parents is moving in with another relative, perhaps someone requiring assistance with care or domestic matters.

Such an arrangement would be a win-win for both sides.

Moving in with a friend is also a way to reduce your accommodation costs.

3. House share

House sharing is a great way to reduce the amount you pay in rent.

Think outside the box. Say you are renting a one bedroom flat at £1,000 per month but two bedroom flats are available at £1,200 per month.

You could rent a two bedroom flat with a friend, each of you paying £600 per month – representing a £400 per month saving on your previous rent.

Over a year that is a chunky £4,800.

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4. Rent somewhere cheaper

You don’t have to live in expensive accommodation in the best part of town – especially when you are saving up for a deposit.

Find accommodation costing the lowest rent possible. That could mean renting in a less attractive part of town.

It could also mean opting for smaller accommodation; for instance, you could choose a bedsit rather than a one bedroom flat.

Remember that such “deprivation” would only last while you are saving up for a deposit.

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5. Sell your car

If you are running a car and doing so is more expensive than using public transport, consider selling it.

You will also get the benefit of the sale proceeds, which can be added as a lump sum to your deposit funds.

You may be able to save more money still by cycling to work and elsewhere instead of using public transport.

Walking may save you even more money. You don’t need to walk everywhere – just journeys where it is easy or convenient to do so.078a93f0ebd880db1cac1612aa33e1ad.jpg

6. Sell a valuable asset

Consider whether you have valuable assets, other than a car, which you can sell to raise a sizeable sum to add to your deposit savings.

That could be something like a luxury watch or jewellery. You may also have investment assets you can cash in – such as premium bonds or shares.

You may not have a single valuable asset but instead you may have several possessions which, if sold, will together net you a sizeable sum. 

Conclusion

Failing to raise a deposit is one of the main reasons why many would-be first time buyers never get on the property ladder.

Make the simple sacrifices mentioned in this blog to secure a substantial  house purchase deposit fast.

Remember that they will be temporary sacrifices and the prize, your own home, is well worth having.

Enjoyed this blog? Please share it with friends by clicking on the LinkedIn, Twitter, Facebook or Instagram icon on this page. 

Are the sacrifices mentioned in this blog within your reach?  How many of them could you make, and by how much could you potentially grow your deposit in a year?

You may also find the following blogs useful:

Cut spending – grow deposit (raise a deposit fast by cutting your spending)
Boost income – grow deposit (raise a deposit fast by increasing your income)
Buy a property with a property (12 ways to raise a deposit using a property)

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Dalton Barrett
Rebel Property Coach

Please follow me on Twitter @Dalton1London
You can find me on FacebookInstagram and on YouTube
Please link up with me at LinkedIn

My website is: www.rebelpropertycoach.com

 

 


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