There are so many options to try and save a deposit for your first home, but with the cost of renting now being similar to the cost of a mortgage it can feel like there is little point in saving for a downpayment, but it is important to get your foot on the property ladder. And depending on your age and career, there are a few choices for you, but it’s all about addressing how you spend your money right now that will have the biggest impact.
Finding Ways To Stop Renting
It’s easier said than done, but there are a few options available to you depending on how old you are. You could return home to live with your relatives for a little while which gives you an opportunity to save up in a relatively short space of time. You could find a cheaper place to rent or if you live alone and have the space you could look for a lodger, depending on if the landlord is happy for you to do so.
Getting Help From Government Schemes
In many countries, there are different ways to get onto the property ladder depending on if you fit in certain criteria. There are things like help to buy schemes in Great Britain as well as the first buy scheme, which helps first-time buyers by loaning up to 20% of the cost of a home. Depending on what career you’re in, there are also ways and means of support to get you into your first home. If you work for the military in Australia under the ADF (Australian Defence Force), there are certain entitlements you can use to invest in properties, and there are websites such as one that gives you the commando approach to property investing, and how to best use those perks. But as a rule, it is possible to get help from the government and if you are in an illustrious career, such as in public service you can get help in this way too.
Purchasing Part Of A Property
If the reason you’re struggling to find money for a deposit is the lack of finances, a suitable alternative might be investing in a shared ownership. There are plenty of shared equity schemes which involve buying part of a property and renting the rest out. Although it isn’t your property outright it is certainly a way to get your foot onto the property ladder. You will still need to get a deposit for this, but it’s only around 25 to 75% of the value of the property. As a result, the amount you would need to save would be a lot less too. The other option would be to buy a property with a friend who has the finances and is also looking to get onto the property ladder. But this can cause personal issues down the line, especially when the question of who owns what arises, which it inevitably does!
Getting that foot onto the property ladder is something we all aspire to do, but as it becomes more difficult as time goes on, we need to find ways around the problem.