For young families, finances are always tight. It makes sense to invest your money in a home, but can you afford it? When you have other financial restraints, such as a car, bills and, of course, the kids, you might find it hard to get the deposit upfront. Saving feels like a never-ending battle between what you want to save and what you can afford to save. If you are ready to buy your first home, read these money saving hacks first.
1 – Save for your down payment first
Saving for your deposit is no fun, and sometimes it can feel as though this stage takes years. It is crucial that you have this money ready before you start looking at properties. If you want to make this process as painless as possible, you should draw yourself up a budget. Of course, you have an amount in mind, and so you should work out how long it will take you to save it. That way, you can work towards a goal and a deadline.
2 – Check the interest on your mortgage
If you know nothing about finances, you don’t have to worry. One thing you should watch out for is your interest rate. That is the rate of excess cash you have to pay your lender on a monthly basis. If you are unsure about your interest rate or the scheme you choose, you need to ask your bank. Sometimes, companies rely on the fact that people are too afraid to ask what terms mean. You need to know what the agreement is before you sign it.
3 – Look for a new development
New developments are worth their weight in gold. If you buy an old property, there are many issues that you might have with it. Over time, the structure of a building becomes weak, and so you might need to make some repairs to a classic building. If you could find a Surrey development at a price within your budget, for example, you would be making a stable investment. That means that you could be sure that you were getting value for your money.
4 – Don’t pay for extra legal help
There is a whole load of paperwork you need to complete when you buy a property. You might think that you need a solicitor to help you draw up the contracts and agreements. In fact, many realtor companies offer you this as an extra service when you buy a home with them. That means that you don’t have to pay an extra fee to a lawyer. Few people realize this simple fact. Ask your real estate agent if their company offers this service.
5 – Find an eco-friendly home
If you buy a home with a high energy efficiency rating, you could save money every single month. The council offers helpful tax breaks to people who are conscientious about the planet’s welfare. If you have not heard about these schemes, you can get information about them online. Sure, it might not save you money straight away, but once you buy a home, you can save on tax every month.
6 – Consider buying at auction
If you worry about whether you can afford a home at all, you might want to look at property auctions. Sometimes, when people need a quick sale, they will sell their home this way. You can, on occasion, get some low prices by buying a house at an auction, and so you should think about doing so. It might be worth talking to your realtor about this option and seeing what they suggest.
On average, you could save hundreds a year by buying a home rather than renting. That is why many people decide to become homeowners, and you should be one of those people!
Buying A New Family Home: 6 Money Hacks You Should Know
February 26, 2015 by · Leave a Comment