If you feel like buying a house is similar to climbing Everest – on a snowy, windy day – then you’re not alone.
But don’t give up hope. There are some things you can do that will help you buy that house without giving up your lifestyle completely!
Strategy 1: Rein in your spending
This is a bit of a no-brainer, but it’s also often the hardest. You do need to get together a deposit and you do need to demonstrate to the lender that you have the ability to pay off your mortgage. So consider the saving period a bit like training for the real thing.
The first step is to actually know what you’re spending. If you don’t know where your money is going, it’s going to be hard figuring out where you can cut costs. Track your spending, using an app, spreadsheet or pen and paper – it doesn’t matter how you do it, but you must know where your money is going.
Once you know what you’re spending, see what you can do to tip the scales in favour of saving. And always pay yourself first!
Strategy 2: Increase your income
Your options here are:
- Ask for a payrise or promotion
- Get a new job or a second job
- Get creative and find a side hustle. Whatever extra money comes in, put it straight into savings – no detours!
Strategy 3: Change your home buying plans
If you can’t afford to buy the house you want, think of alternatives to get you into the market. You could:
- Ask family for help – you may need to put together a compelling proposition of how you will pay back the loan to convince them that you’re a good risk, but if that’s what you’ve got to do, then do it.
- Go halves with a close friend, partner or family member – but make sure you get a contract and agree on your exit strategy.
- Buy a cheaper investment property and stay renting where you want to live. The investment property could be the stepping stone to your dream home.
The bottom line is, the longer you wait, the harder it becomes.
Take control, think outside the square, make some changes and make it happen. Sooner rather than later!
#buythathouse
