Many of us would love to own our own home and we might even have a specific idea as to what our dream house would be like. It can be possible to save up to buy a home, but it is worth understanding what home will be best for you as well as what you need to do in order to be able to afford it.
What is your dream house?
It is good to think carefully about what you would like your dream house to be like. Many of us might be thinking of something which is far more expensive than we can realistically afford. It may still be possible to afford something like this, but it could also be worth thinking hard about whether this really is the home you want. For example, many of us might like a big house, but it will be hard to clean and we may not even use much of it. We might like something old, but it will be more likely to need expensive repairs or we might like the idea of a big garden but it will take a lot of work to keep it looking good.
It is really well worth thinking about what it is about your dream home that you really like and consider whether you can find that it any home or just a specific one. It could be something that you could add on to a standard home, for example or something that may turn out to be not quite as good as you had hoped, once you have it. So make sure that you are realistic and think carefully about what you really want from your home.
How can you afford a home?
Once you have got your thoughts organised with regards to what sort of home you want, you will then need to find the money to pay for it. Most people will get a mortgage to pay for their home and if you fulfil certain criteria you will be accepted. You will need to:
- Be old enough
- Have a regular income that is high enough to afford the repayments
- Not have too many expenses.
- Have a suitable deposit
The deposit can tend to be the thing which worries many people. They will be happy to find the monthly mortgage payments, but finding a lump sum of money to put down can be a big worry for them. However, building up a really big deposit can be the best way to keep how much you borrow to a minimum or to help you afford the home that you really want.
If you have enough money to pay a mortgage repayment each month then you can start by putting that amount of money in a savings account each month. You will have to manage without this once you get the mortgage so you should get used to it right away. You may need to make some changes to how much you are spending or even to how much you earn to be able to afford this. Making changes is sensible though, as if you can earn more and spend less it will mean that you will be able to put even more in the savings account and save up what you need even more quickly.
There are other things you will be able to try as well. Firstly, look at your savings and see how much you have as these can be used towards the deposit. If you have investments then you may wish to consider selling these to help out. You may also have things that you own and no longer need that you could sell to generate extra money as well. These things could help a lot, but if you want to gather a deposit really quickly then you may have to change your behaviour even more drastically. You might have to work more hours or get a second job to increase your income and spend only the bear minimum on things that you need rather than buying luxury items. You will be best to do a review of your earnings and spending and come up with a plan so that it is easier to change your behaviour and make sure that you are doing the best that you can. It can feel difficult at times, but it is important to have your goal in mind so that you make sure that you are able to keep focussed and remember why you are doing this. The more quickly you can get the money you need up together, the more quickly you will be able to buy the home of your dreams and that should help to motivate you as well. For most people this will not be easy, but it will be worth it.