If you don’t want to be renting forever, then here are 8 ways you can increase your chances of buying a property before you reach 30.
1. Move back in with your parents
To give you time to digest this one, we’ll get it out of the way first! Moving back home to increase your chances of buying a property before you reach 30 can be a big catalyst for amounting a decent deposit. The average twenty-something can spend almost £30k on rent over this decade in their life, and whilst this isn’t the ideal situation to be in just when you’ve been granted independence, think of the deposit you would have if you didn’t have to fork out on rent?
2. Improve your credit rating
So many people don’t realise the potential mortgage pitfalls that can result from a poor credit rating. If you keep your credit rating healthy from the age of 18, you should have a good score to your name to help you increase your chances of buying a property before you reach 30. Get yourself on the electoral roll, pay off bills and credit card payments on time.
3. Give your savings a boost
As you save your deposit make sure you are getting the best savings rate available, and even consider locking some money away to help boost your deposit. You can save £200 every month with a Help to Buy ISA which launches on 1 December 2015. The Government will boost your savings by 25%, effectively giving you £50 for every £200 you save, so you could find yourself £3000 better off.
4. Keep your rental deposits safe
A mini-savings scheme in its own right, your rental deposit should be making its way back to you after you shut the door on a rental property, and not into the back-pocket of your landlord. Compile an inventory and take lots of photos. If you need to pay for a deep clean then make sure you carry this out before you leave. Fulfil everything specified in your contract’s terms and conditions and you shouldn’t have any issues to deal with.
5. Buy with a friend or partner
We’ve picked up on this before, and if you’re prepared to pool your deposit with a friend or partner, then you could find yourself owning a property far earlier than if you decide to go it alone. Make sure you spend time covering off the legalities of shared ownership though, in case you ever find yourself going you separate ways.
6. Look outside your ideal area
If you have your eye on an affluent area, if doesn’t take a genius to work out that if you lower your sights a bit, you won’t be saving forever and a day for a property that seems a million miles away in your twenties. Property hotspots are popping-up all over the UK and can offer an attractive compromise on your ideal location, and offer a neat solution to increase your chances of buying a property before you reach 30.
7. Guard a property
If you can handle alternative living, and are not shy of responsibility, then why not consider becoming a property guardian? You will get paid to house-sit a disused school, church or even an office to prevent squatters camping down. You’ll still have to pay rent of about £300 per month, but this could cut your typical rental costs in half allowing you to save towards your home of choice in the long run.
8. Build your own (not so Grand!) Design!
Although it sounds daunting, more and more of us are taking to building a home for a fraction of the cost of buying one. The Chancellor announced early last year, the launch of the Help to Build initiative which allows self-builders the right to buy plots of council owned land to build on. You can now add your name to a list of interested individuals which could see you build a typical three-bedroom house for around £150,000 with a stamp duty saving thrown in to boost.
If you are prepared to make some sacrifices and suffer in the short-term then it could turn out be the best financial decision you ever make. Getting on the housing ladder pre-30s isn’t easy by any means – but if you can get a handle on your savings and buy the right property at the right price, it will be a decision that will pay you back in your later years.