British Money

Top 5 Tips for Building a Deposit on a New Home

“See, when you drive home today, you’ve got a big windshield on the front of your car. And you’ve got a little bitty rear view mirror. And the reason the windshield is so large and the rear view mirror is so small is because what’s happened in your past is not near as important as what’s in your future.” – Joel Osteen

Property investment is one of the best ways to secure your future!

Buying your first home is a beautiful experience indeed. However, with the property prices going up rapidly, it remains challenging for a majority of people to invest in property. If you can save more money, you can own your dream home quickly with less to borrow. Recent studies into the property market will give you an idea of how house prices in the UK have skyrocketed over recent years and why.

Before you buy your new home, it’s crucial to know how much deposit you will need. So, building a deposit efficiently and intelligently is essential. There are some proven techniques that can help you to understand your financial requirements and enable you to achieve your financial goals.

  • Think of ways to monetise your finances
  • Have you decided to buy your dream home? No worries, you don’t have to worry about spending your entire savings. It is advisable to monetise your existing assets. You can either invest in different funds or a range of financial offerings by trusted financial institutions which could help you grow your money tree. However, ensure that you’re aware of the ROI (return on investment).

  • Set a monthly budget
  • An excellent way to save more money. You don’t have to compromise on your basic needs. However, you can make a list of the necessary items that you need and avoid buying expensive items which are more of a luxury. Saving for a deposit can take a long time, so you must be patient to achieve the final goal.

  • Look for a secondary income source
  • If you’re saving for a new home, you may need to increase your income. Today, everyone would like to create a second income source for themselves. A second income is a great way to save more without cutting back to much. Several such platforms provide an opportunity to earn extra money such as selling art and craft online, freelancing, online tutoring, a small business that you can run from home and many more.

  • Try to pay back any previous loans
  • Do you own a car bought with a loan a few years back? If you can possibly pay it off, you should but check the t’s and c’s first. Now that you are planning to buy a new home as quickly as possible. The interest can be saved and will contribute significantly to your deposit.

  • Look out for low rent accommodation
  • If you are currently staying in a rented apartment and paying a huge amount of rent, you should try temporarily moving to less expensive accommodation. The extra amount you save can go a long way to boosting up your deposit. A little sacrifice that will go a long way when buying your own house.

Saving for a house is time-consuming and requires sacrifices. However, the tips we have provided could be useful for you when trying to fulfil your dream of buying a new home.

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About the author

Starting his career in Estate Agency, Jeff quickly moved up the ranks to manage his own office for Halifax Property Services. Co-founding Speed Property Buyers in 2008, he has applied this knowledge and overseen rapid expansion of the business.