It’s no secret that saving for a deposit is a pain in the arse. No matter how many avocados on toast you give up, it can take years to save the money you need.
As the infographic below from Key Retirement shows, saving for a 16% deposit could take you longer than anticipated. If you’re looking for an average priced house in the North West and you earn the average weekly wage of £502, it could take you 4 years and 7 months. Personally I don’t think that’s too bad… until I look at those buying an average priced house in the South and realise they’re looking at a whopping 11 years and 7 months to save £75,777. That’s longer than a prison sentence for many serious crimes.
Nevertheless, if you’re tired of renting or living with your parents is getting seriously old, don’t let this news halt your homeownership dreams. Thankfully, there are things you can do to speed up the process:
Buy a below-average house
Your first home may have to be ‘below average’ in terms of size, quality and price. Since property prices are so ridiculous, you’ll probably have to make sacrifices in order to get your foot on the ladder. This may involve buying a house with two beds instead of three, a flat in a less-than-perfect area or an apartment that looks like it’s straight out of Joel Golby’s London Rental Opportunity of the Week series. Just kidding. If the bed and bath are in the same room, walk away.
— Jenni Hill 💷🏠🛬🌏 (@CantSwingACat) October 5, 2017
Put down a smaller deposit
Generally, it’s a good idea to put down as large a deposit as you can. By putting down a deposit of 20% or above, you can access a wider range of mortgage deals, lower your interest rate and reduce your monthly mortgage repayments. However, let’s be realistic here – a 20% deposit isn’t doable for everyone. If you don’t like the idea of spending a decade saving for a house in Brighton, save a 5% or 10% deposit instead.
Buy with someone else
If you’re in a relationship with someone who shares your homeownership dreams, lucky you because you’re automatically halving the amount of money you have to save. You’re also increasing your eligibility for a mortgage and making your mortgage repayments more manageable.
If you’re a single Pringle with nobody to love (relatable) this is obviously easier said than done. Tinder’s great n’all but there’s no guarantee you’ll find The One within your ideal home buying time-frame. I’d recommend joining the Money Mess To Financial Success Facebook group for inspiration, motivation, and encouragement. You’ll be surrounded by likeminded people, many of whom are also saving for their own place. You’re in for a long journey, but I promise it’ll be worth it when you get your keys.
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