The cost of buying your first home nowadays is something to behold. It’s pretty uncommon to get a 100% mortgage, and you are more likely to be required to put down a 20% downpayment in order to secure your loan. This can take an age to save up, especially with the current cost of living, and even more so if you’re using that money to rent somewhere. However, this doesn’t mean that the end is not in sight for your renting days - it simply means that you have to consider options that you hadn’t even thought of.
Move Back With Parents
Although it may feel like a step in the wrong direction, if you are able to move back in with parents, or other members of your family or some good friends, you will be able to save money. Unless they’re charging you the same amount of rent as you would be paying on wherever you’re currently living, you could be saving yourself a small fortune. Bills, utilities, insurances etc. will not have to be paid out by yourself. If you’re really lucky, they won’t charge you anything; but don’t take advantage of this. Treat it as a short-term plan and get your saving head on. It’s not an excuse to go out and spend the extra money on nights out or gadgets that you’ve been coveting for months; keep on plan and you’ll be at your money goal before you know it.
Don’t Buy A House
Not buying a house when you want to buy a house can seem like a strange thing to suggest, but you don’t have to go for the traditional bricks and mortar. For example, you could have a look at mobile homes that are available in your area, which are traditionally a whole lot cheaper than a normal house. You could invest in a boat to live on, take out a tent to camp for a year [which sounds basic, but with all the features that are available for them now, they’re easily adaptable to your needs], or even live out of the back of a campervan/trailer. There’s so many options out there that it can be hard to know where to start. However, if you’ve set your sights on a house and nothing else, then keep your focus on that.
If you’re renting, you have the option of moving quite freely and easily depending on when your contract ends. If you know that you are paying over the odds for where you’re living, or could fit everything into a smaller house/space, then take a look around and see what’s available to you for a cheaper rate than what you’re paying now. Anything that you save should go straight into a bank account that doesn’t allow frequent withdrawals to allow you to build it up for a deposit. It’s surprising how quickly you can actually amass the amount you need when you’re not really noticing it coming out of your budget - if you’re used to paying that amount for your rent, for example.