If one of your dreams is to buy a house, saving for a deposit may be one of the biggest hurdles you face. With most households struggling to survive, let alone save, it can seem like you’re further away than ever from owning your own home. However, it is possible, so take a look at our helpful tips for saving up a deposit.
House Share[/b]
This works in two ways, when you’re renting, and when you’re buying too.
By renting in a house share, you can reduce the amount you’re spending on rent, bills and even things like food. SpareRoom.co.uk has releases figures that reveal that in some parts of the country, people have saved a 15% deposit in less than three years by house sharing. The average cost to rent and run a one-bed flat (outside of London) is £8,394 a year, whereas the cost of renting and running a room is £4,680. You could even move in with your parents to reduce your outgoings on rent even further.
You could also consider buying in a house share with your friends. Combining savings with more than one person is a sure-fire way to fast track a deposit. It also means that you’ll spread the cost of the rest of the fees, such as conveyancing, stamp duty and removal charges. However, you do have to consider the issues that might arise when house viewings – will you all be able to agree? Another issue may arise if someone wants to leave and sell their share of the property – you either have to find someone else to buy their share, or buy them out yourselves.
Saving[/b]
Use a comparison site like Money Supermarket to help you compare the best savings and Isa accounts. An Isa will help you build up a deposit quickly, as they allow you to save up to a certain amount without tax each year. If you have more than one person saving up this way, you’ll have a decent deposit in a just a few years.
Government Help Schemes[/b]
NewBuy and Help to Buy are government schemes that help you buy a home. NewBuy allows first time buyers to buy a new build home up to the value of £500,000 from particular developers with a 5% deposit. Help to Buy is a scheme that allows buyers to purchase a home with a value up to £600,000 with a 5% deposit.
Shop Around[/b]
When it comes to looking for your property, make sure you do thorough research in to the area you fancy. Wilfords for instance, offer an authority on properties in a variety of locations in London.