Tips for saving up for the deposit?

Strapped

marginalone wrote: »

Its a 9 to 5 sales job, I did think about renting the room out but the spare room has all of my stored items!!

The answer to stored items is...eBay. Seriously, sell the "stuff" (none of it can be that important, if it's just stored) and get a lodger. I paid for my first house with a lodger or three.

HugoSP

The only issues with letting out the extra room is that your tenancy agreement may expressly forbit it. In the ASTs that my tenants sigh there is a clause to prevent subletting, it complicates the legal issues as to who is the tenant etc.

I'm not saying don't do it, but check your tenancy agreement first then proceed with caution. If your LL finds out you're doing this without his permission you could be chucked out within weeks, which would scupper all your plans.

Alternitively, why not broach the subject with him? Be up front and tell them that you're trying to save for a deposit, and you would be entirely responsible for lodgers etc, then do as Strapped suggests and sort out all your junk?

Also, there are several housebuilders who are selling both newbuild and second hand houses that are offering to pay deposits for the buyer.

Make sure that the advertised price is not excessive (inflated to give them the room to fund your deposit). Hit the phone and go around the housebuilders as they are taking on part exchanged property that they need to sell, explain you are a FTB but don't yet have the deposit.

Then when you get details make sure you compare them with other houses on the market - you seem quite savvy so I don't think you'll end up paying over the odds.

Good luck.

Chaddee

I earn pretty much the same as you but pay no rent. I save £1100 per month. If you spend approx £500 on rent etc (council tax?) then you could easily save £500 per month. Just set yourself a budget - mine is £200 per month to live on for food, nights out, clothes, toiletries, and the remaining £200 goes on my car.

chelseablue

Hi

I work a 9-5 job and took on a 2nd job. 2 nights a week plus weekends.

Me and my bf managed to save £36K in 2007. Its hard work but can be done.

Even small amounts each month soon add up.

Good luck!

poppy10_2

Mortgage repayments will be well over £300 more than you are currently paying in rent. Why would you want to do this when there is virtually no possiblity of short-term capital growth?

cupid_s

marginalone wrote: »

Whats an SOA?

I would be really, really reluctant in using CC...

Hi, SOA = Statement of Affairs. You get a lot of people posting then on the debt free wannabe board. You put up what you spend where and some nice people help you find areas to cut back/make more money. A bit like an online spending diary.

I think maxing out a cc just to get a deposit would be bad. And when we bought our house we were asked how much we had on credit cards/loans and they'd have given us less mortgage had we had debt.

If you have a 2bed flat for £450, renting out the other room would be ideal if you think you could live with someone else. Sell excess stuff or if you think you might need it at a later date, store it (it would cost a lot lot less than what you'd get towards the rent).

On your wages, with cheap bills, no car/transport you should be able to save £500 pretty easily without much effort.

poppy10 wrote:

Mortgage repayments will be well over £300 more than you are currently paying in rent. Why would you want to do this when there is virtually no possiblity of short-term capital growth?

This is a really good point, and if I was paying so little for rent compared to what a mortgage would be I wouldn't bother buying. But, the comparitive costs might not always be in favour of renting, and if rents increase faster than house prices then having a good deposit to be able to buy somewhere has got to be good.

Stargazer_Lily

lynzpower wrote: »

My advice is live like you are in debt.

An excellent idea. Although you aren't in debt the Debt Free Wannabe board could become your new best friend. They have loads of advice on how to cut back, budget and save any penny you can.

Think of your savings account as a debt that you have to satisfy every month (by setting yourself a "repayment" of £500 each month), make that your priority after paying your rent and bills, and by this time next year you are looking at at least £6000.

Now is the best time to do it too - if you start an ISA savings account now, you can start paying into that and then open another one in April with the new tax year, effectively giving you £6,000+ of savings you can store up tax free.


Lil

Phirefly

marginalone wrote: »

Unfortunatly, my present job makes the attraction of a 2nd impossible!

marginalone wrote: »

Its a 9 to 5 sales job

Eh?

I'm a full time design manager but I find time to double my income through freelancing. The prospect of slaving away till all hours while Mr.P is curled up snoring certainly isn't 'attractive' but we have a much nicer home than we would have otherwise, and by the time I'm 40 I'll be kicking back nicely...

moyilla

Stargazer_Lily wrote: »

An excellent idea. Although you aren't in debt the Debt Free Wannabe board could become your new best friend. They have loads of advice on how to cut back, budget and save any penny you can.

Think of your savings account as a debt that you have to satisfy every month (by setting yourself a "repayment" of £500 each month), make that your priority after paying your rent and bills, and by this time next year you are looking at at least £6000.

Now is the best time to do it too - if you start an ISA savings account now, you can start paying into that and then open another one in April with the new tax year, effectively giving you £6,000+ of savings you can store up tax free.


Lil

Hi can you explain the Isa bit? I thought you could only have one ISA

poppy10_2

One ISA per year.