Renting and saving for a deposit can seem impossible sometimes. You may feel like once you’ve paid rent, you have no paycheck left to save towards a deposit. However, by being savvy with your money and taking advantage of government schemes like the Help to Buy: ISA, saving for a deposit whilst renting is achievable.
This article highlights the 6 best ways to save for a deposit whilst renting.
- Choose an Affordable Location
Do some research and look around for the cheapest area to live whilst you’re renting and saving for a house deposit. Student areas such may be more affordable than some other areas.
You may also get more for your money by looking around for cheaper rent, as sometimes you’re paying extra for the location and not what the house has to offer. A good estate agent can help you with this, let them know your goals: a nice, affordable place to live, with low enough rent to save money, to hopefully buy a house through them in the future!
- Live with Other People
If you have the opportunity, you could try to share your rental with others. By sharing a home with someone else you cave save on your monthly rent. Whilst you may not want to share forever, doing it as temporary measuring whilst waiting to buy can be well worth it! The money you save will go into your savings for the house deposit.
- Work out a Budget
Make a budget for each month and work out how much you can realistically afford to save towards your house deposit. Look at comparing gas and electric companies to get the best deal so you’re not wasting money that you could be saving. You can look at alternatives for internet and television providers as well. Once you know how much you can save each month, look at setting up a savings account with interest.
- Get Help with Government Schemes
To get your savings topped-up by up to £3,000, you should consider using the government’s Help to Buy: ISA. With this plan, for every £200 you save, the government tops it up by £50! (Minimum savings of £400 to qualify). To receive the maximum bonus of £3,000, you will need to save £12,000, which will give you a £15,000 house deposit. This scheme is per person, so if you are buying a home between 2 people you can both save and could end up with a £30,000 deposit between you!
- Control Your Spending
If you buy lunch or coffees when you’re in work, you could start to make your own lunch and bring your coffee in a flask instead. You’ll be surprised at how much money you save by giving up small purchases, it can quickly add up to hundreds of pounds per month. By doing this, you will have more money to put towards your deposit each month.
You could also consider shopping in second-hand shops and visiting car boot sales.
- Pick up Extra Work
The internet is filled with a wealth of job opportunities you can do from the comfort of your own home. Whether it’s writing articles or doing surveys, if you put a bit of time in on the weekend or after work, your savings will soon start to grow with the extra money you earn.
If you stick to a budget, get the help that’s on offer, and cut down on unnecessary spending, your savings will soon start to grow and you'll be putting down a deposit on the house of your dreams in no time at all!
Thomas H Wood estate agents have been serving renters, buyers and sellers in the Whitchurch and Radyr areas of Cardiff for years and are experts in local knowledge. We can help you find the perfect rental property to help you meet your monthly savings budget and we will help you find the perfect property to buy when your deposit grows large enough!
These money saving tips were provided by Compare My Move where you can save up to 70% on your moving costs.