Saving Money Whilst Renting
It seems that the rental market is doing well at the moment, whilst house-buying is down. Many aspiring first-time property owners feel that they are stuck in a very depressing spiral: with the rental market buoyant, their rent is either staying put or going up, and this means that most of their income is being spent on rent as a result... with less and less they are able to put aside to save for a property of their own.
There is certainly some sort of irony with this situation: people's major cost when it comes to wanting to have a place of their own is the roof over their heads that is not their own! If you are finding yourself spending most of your money on rent and therefore not able to save for the home of your dreams, then what can you do? Here are a few options available.
Hi Mum, I'm Home!
It may not be the most popular option, but for many, the answer is to move back to the family home and pay a vastly reduced rent: where you may be paying £800 a month, say, to rent a two-bed flat, it may be you can go home and pay just a quarter of that (depending on whatever agreement you come to with parents of course!). This option may or may not be practical, or indeed desirable, but if it is a genuine option then it is worth considering: whilst you might not want to take what is considered a 'backwards step' by many, consider the facts: by living at home many people can slash their rental costs meaning that they will be able to get a place of their own many years earlier than if they continued renting, AND many people now live at home until they are into their 30s, so there is no shame in doing it!
Flatshares can be a great way of saving money by living with more people, quite simply! If you are a couple then you may really value having your own flat, and that is indeed most desirable, but the rent is being split between two - by having a flatshare, even if you feel you are regressing to university days, remember that there is the option of saving several thousand pounds of outgoings per year, so doing it for a couple of years can make all the difference on being able to stump up the cash for the deposit on your first property.
There are all sorts of other options that one might like to consider, whether it is doing something like buying with mates (with great care: make sure it is a friend that you know and trust absolutely and that all the legals are absolutely sorted out before even thinking about it!) Or if that's not an option, then there are various other options such as shared ownership schemes: there is a lot to think about and research as with any non-standard option, but if you are struggling to get on the ladder, then it may be time to get creative and start looking into these sorts of options.
More first-time house buying articles:
- What are the current stamp duty rates?
- Buying a new build
- Getting the Most from an Estate Agent
- Pros and Cons of Buying at Auction
- Property Likes versus Must Haves