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How to save for a deposit but move out of family home at the same time?


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4 hours ago, jadely98 said:

Me and my partner are desperate to move out of my mums house but also I want to save up for a deposit for a flat. What's the best way to go about this? 

I think that more information is needed before anyone can give a considered response.

Where you are currently living, or wish to live will have a huge impact on the answer you will get.

Similarly, how much of your incomes can you afford to devote to property, I am assuming that you would rent one property and have disposable income to save for a property purchase.

No magic fix, I'm afraid.

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Just 10 Top Tips for you...not financial advice ;) 

 

1. Set a budget that covers your essentials AND a savings commitment of at least 10% of your earnings (ideally more)...also have a coin jar and drop everything less than say £1 in it to give your committed savings level an extra boost (and there are some banking and money management apps available now that allow you to 'round up' your spending for some extra little help too!).

2. Look at alternative ways to keep your accommodation costs low until you can buy your own place, such as living in a house share instead of your own place (PS - living at home should be the cheapest option, but I know how you feel by wanting to have your own space too).

3. If you are buying your own flat to live in, then consider saving via a Lifetime ISA and possibly one each if you can save above £4k a year: https://www.gov.uk/lifetime-isa the Government will gift you 25% on top of your savings, so even if you opt for a cash ISA that still means a significant tax-free boost to your savings.

4. Defer luxuries as much as possible and settle for 'own brand', 'prior generation' or 'previously owned' purchases wherever possible...delayed gratification and all that

5. Sell all of your unwanted items to help build the deposit fund.

6. Consider an extra job, overtime, a side business or other ways to boost your income and accelerate the rate of savings growth too.

7. Perhaps ask if mum would help contribute towards your house fund...she just might you know...especially if you share this plan with her!

8. Look at Help to Buy new build options and compare these with buying a beat up old property that you can add further value to...the first option can give you additional leverage but you will pay the 'developer's premium', whereas the second offers no additional leverage but allows you to create your own 'developer's premium'.

9. When you buy your flat, try and get a 2-bed...you can then rent a room out tax-free (lodger or Airbnb guests) to help save for the next investment property (or put towards the help to buy loan repayment).

10. Whilst you are doing all of this, get yourself as much financial and property education as you can (free or low-cost)...make the savings period also a property investing apprenticeship if you like...check out my signature below for plenty of resources that would fit the bill and keep your busy feeding your brain with plenty of knowledge as you won't be going out that much!

 

Finally...good luck!

 

Best

Richard

Richard W J Brown a.k.a. The Property Voice

Property Investment Strategist

10%+ ROI property deals every week: check out PROPERTY DEAL TIPS
Amazon best-selling author Property Investor Toolkit & #PropTech, YPN Magazine columnist & PODCAST host

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