Renting and having trouble saving a deposit?
How does anyone manage to save a house deposit whilst paying rent (especially with kids)!?
Making the actual repayments is likely the relatively easy bit if you’re already renting – in a lot of case the rent is similar to the prospective mortgage payment, so the question is raised – if I can afford the mortgage repayments why can’t I buy my own home?
I hear so often that It's the deposit bit that seems impossible while renting, and I agree, I agree.
But we have all done it. And setting aside the difference of property prices ‘back then’ to now (and relatively the differences in income), if you want to buy property you’re going to have to do it. And if you’re waiting for the ‘bubble’ to burst, I honestly don’t think it’s going to happen – sure, if interest rates rise dramatically we may see prices plateau a bit, in my opinion – but do you really think prices are going to halve, or drop similarly dramatically? You may as well get in as soon as you can.
Back to how – if you’re renting we’ve already established it’s tough, so can you move back home for a bit to save money? And I mean really save, not move back home and enjoy a few treats because after all – there’s no rent to pay…
And if your parents are willing to help by sheltering you, ask if they would be willing to help by offering you a limited guarantee against their place? Guarantees of old are much different to guarantees today which are often limited to only a portion of your loan amount, and, can be removed in a shorter time frame. If you don’t ask it’s a definite no.
Consider working out your target – how much you need for deposit and costs – and working out how quickly you could meet it if you were willing to live on bare bones; you can go without a lot to do amazing things over a short period of time. I talk about saving for my first home – dinner was toast and begged meals but so worth it. Amazing what you can do with willpower and a goal!
Otherwise, consider a de-clutter and sale on eBay, sell the car & pay out any loans, ask for a raise, take a second job, what else can you do to raise as much cash as you can & get on the ladder sooner?
Article written for the Western Weekender