Whether you are looking to buy your first home or move to a new house it’s a big expense that needs a bit of planning. But with these tips, you can make the whole process a piece of cake.
1) Create a Budget
Ever get that feeling that your money is just evaporating? That’s why creating a written budget is so important. Get clear on how much you have coming into your household each month. Write down every single income and expense that you have. With income don’t forget any side hustles you have. When you work out your expenses include everything from the bills and food shop to the day-to-day little expenses. Basically, make it as detailed as you can so you know where you stand.
2) What Can You Afford?
Before you get carried away looking at all those houses on Rightmove you will want to know how much you can afford. Make sure you figure out your mortgage payments before you start to view houses. You may get a pleasant surprise and find out that you can get something bigger than you had expected. Or you may need to start looking in different areas than you had originally planned.
3) Save For a Deposit
Saving up for a decent house deposit will put you in a much better position for getting both the house you want and a better interest rate on your mortgage payments. If you’re a first-time buyer there are some Government-backed schemes that can help you get on the property ladder by adding to your deposit. The LISA is a great one as it adds 25% and you can put £4000 a year into it. It’s essentially free cash. And don’t forget if you’re in a couple you can both get a LISA so that’s double the bonus!
4) Cut Out Non-Essential Spending
All those takeaway coffees add up! If you are serious about moving home, then you will want to save as much money as you can. Think about any subscriptions that you have that you can get rid of. Keep your goals in mind and it will keep you on track when you need a bit of motivation.
5) Consider Alternatives
Think outside the box if you are struggling to work with your budget. If you are working from home maybe you could look at fewer bedrooms and instead create an office in the garden. Or use room dividers to split a room in half to create more dedicated areas. Perhaps you could include flats in your search as well as houses to open up some more options.
You may not be able to get your dream house just now but that doesn’t mean that you can’t get something that you love. Perhaps you can’t get that really pretty house with the large mature garden but maybe you can add to the house and garden gradually over time and put your own stamp on it. You may even have to include different areas in your search but in doing so you may find a new place that you absolutely love. Keep your options open and make sure you buy a home that you can afford.
7) The Future
You may be in a position to buy a house now that can grow with you as your family expands in the future. But don’t put too much pressure on yourself to find a forever home in the beginning. And it’s not always the best option. There is nothing wrong with finding a place that is suitable for your needs now and then moving later on when your circumstances change.
Moving is such an exciting time so get your ducks in a row and enjoy the process. You’ll feel so proud of yourself when you get the keys to your new home.
Note: This is a paid collaboration