Being stuck in a cycle of renting is not easy when you want to escape and buy a property that is your own. The cost of renting can be almost as much as the cost of a mortgage, and in some areas, it can be even more.
Saving for a deposit can be made very difficult when you are paying over the odds in rent, and then you end up trapped paying rent and you can never move into a home that is exclusively yours.
There are several ways that you can get out of the rent trap and speed up your savings efforts, and even if it takes more time than you expected, it can be done! Check out our savings hints below that are there to get you out of the trap that renting can put you in.
Stop Renting
Yep, we know it’s not always that easy. You may not be in a position to approach Altrua Financial to get a mortgage sorted yet, but renting your own place can leave you with very little spending money to put into savings each month. Moving back home with parents, or downsizing to a smaller property should be considered. While moving home can feel like a step backward, think of it as a step toward your new home that you will own instead of rent.
If neither of these options are feasible to you, then you should consider getting a lodger. Living with an extra bedroom sitting empty that you could be making money from doesn’t make any sense.
Pay Less Rent
When you downsize to a smaller home, you can end up paying less rent. That surplus amount of cash that you have now freed up can go into your savings and put toward your deposit. When you downsize, you also save money on your utilities and taxes, so all the money you would save can go toward the deposit, too.
Get Some Help
A deposit is a huge chunk of money, and you need to research where you can get some assistance. You can’t take out a loan to pay for a mortgage deposit, but you can research government schemes that may be available. You could also ask your parents whether they can give you a helping hand in buying a home and if they can put toward your deposit. If they don’t have the cash to lend you, they could step in and be a guarantor for you.
Budget Wisely
When it comes to saving a hefty amount of money, you need to consider how much you currently budget and look at what your surplus is for each bill that you pay. Be sensible with what you estimate for each bill or payment that you have to make each month, and you can watch your savings grow.
Saving up cash isn’t always easy when you are busy trying to live your life, but a mortgage could be worth all those months you will take to save that deposit.