It’s often said that millennials are never going to be able to own their own home. There is a growing trend for renting property as more and more people find it impossible to save for that all important deposit to put down on their first house. With stagnant wages and increasing house prices, there is no wonder why most millennials are settling for a lifetime of renting.
However, it doesn’t have to be that way. In fact, it is perfectly reasonable for all millennials to save up for their very own property. They just need to be a bit savvy with their cash! Are you a millennial worried about only being able to rent for the rest of your life? Or maybe you know one who is currently struggling to save up some cash for a deposit. Either way, you need to read this useful blog post. I’ve compiled some unbeatable tips that can make home ownerships a reality for millennials.
Get Help From The Government
The government knows just how difficult it is for young people to get their foot on the property ladder. Thankfully, they have stepped in and created a few different schemes that aim to help millennials build up their deposit. There are special bank accounts that have high-interest rates and into which the government will pay special payments. It’s not only the government that is trying to help young people. Banks are also offering mortgages that are easier for millennials to get. There are even some banks that offer young people 90-95% mortgages for those who are finding it hard to save up. You can also turn to private firms for specialist loans as well, such as the fha home loans.
Cut Down All Spending
There is only one real way you are going to be able to save up a considerable sized deposit. And that is by cutting down on all of your spending. That means that you will need to not make any frivolous purchases between now and the time you manage to get your deposit all saved up. Sure, this means that you won’t have much money available for social events and minor purchases, but you only have to live like this for a few months. And it will all be worth it once you move into your brand new home!
But how exactly do you know just how much money you need to save from cutting back on spending? It’s easy; you just need to make sure that you are budgeting effectively. To do this, you need to look at your income each month and all of the monthly outgoings you have. Using these figures, you need to make sure you know exactly how much you have to spend on necessities such as groceries, rent, and transport. Then you can see how much you have left over every month. Ideally, you need to try and save all of this extra cash. Once you have created this budget, you will be able to also see how long it should take you to save up for a budget. You’ll be able to see that the end is almost in sight!
Move Your Savings Around
Savings accounts are just like any other product. Their price and benefits will change over time. That means an account that was once the best available may no longer be quite so attractive after a year or so. For this reason, it is important that you regularly reassess all of your savings and make sure that they are in the best place. What do I mean by the best place for your savings? Well, it needs to be a fairly low-cost account but still deliver with a high-interest rate. That way, you can grow your money much quicker than if you had left it in a regular current account.
The Bank Of Mom And Dad
Of course, if you are still struggling to save up all the cash for a deposit, there is a final resort you can turn to. And that is the bank of mom and dad! Most parents give their children some extra cash towards their deposit these days. For those who are particularly struggling, parents could also put their name down for a guarantor mortgage.
As you can see, it isn’t so hard getting onto the property ladder after all! It will just take a bit of time and dedicated saving. If you work really hard towards your deposit, you will get all the cash before you know it!