Buying your first house and climbing onto the property ladder is one of the biggest achievements in life. In modern day Britain, it’s no secret that buying a house does come at a hefty cost. Saving for a deposit for a house takes a lot of hard work over a number of years, but in the long run, it can be extremely rewarding. Most people associate the bulk of the cost of having your own home with the deposit, but it’s important to factor in the furniture and any household appliances you’ll need to purchase and then most importantly, your monthly bills once you’re up and running.
If you’re planning on buying your first home over the next couple of years, then it’s important to look beyond just the price of the house and try and gage an idea of your monthly outgoings and the extras you may need to pay out for. If you want to start seriously saving for your first home or want to start looking at the additional costs you’ll need to pay and where you can try and save money, then hopefully this post will help you out.
Make a start on saving
At some point we’re all going to want to buy our own house, so it’s best to start saving earlier, rather than later. There are a number of useful savings accounts for first time buyers, such as the help to buy ISA and lifetime ISA. For various reasons both are the perfect way to save for your first home and offer great interest rates and other financial benefits. Using the help to buy ISA as an example, you can only save up to £200 a month but once you’ve reached £12,000, the government will make the total up to £15,000. It’s a great initiative for first time buyers but it’s important to know it does take a lot of hard saving and it won’t happen overnight, so don’t get put down by this.
Saving money on your monthly bills
There are many areas in which you can save money on when it comes to your monthly bills. A lot of people don’t like to admit it but are fairly lazy when it comes to finding cheaper packages, for example, saving money on your broadband and TV. Most people just stick to what they know and don’t like change, but many companies offer broadband and TV deals, which are worth researching. Instead of just settling for the package you think is the cheapest, spend some time comparing different packages from different companies and make sure you’re not paying more than you should be. Looking at the latest deals, EE and TalkTalk are currently the cheapest at around £33, whereas packages with Sky are starting at around £40; giving you an idea of how much you can save.
Keep a track of your finances
Keeping track of your finances can sometimes be a difficult task, so it’s worth downloading an app such as Money Dashboard, which helps you track all of your finances in one place. You can easily locate all of your accounts and view your finances via graphs and easy to read data. Using an app means you can view your information at the touch of a button and not have to worry about finding bits of paper containing all the relevant information.
Hopefully the points mentioned will help you out when you decide to buy your first home. Although it’s a long process of saving and researching, it will all be worth it in the long run and it’s important to keep reviewing your finances and see where you can save any potential costs.