Trying to understand how much you will need for a new home can be overwhelming, especially when you have no idea yet where you’re moving to or how much it’s going to cost. That’s why getting organised and planning ahead will help you to become more confident with the first-time buyer financial journey, and the following ideas can help with that.
Open Up a Designated Savings Account
To be more organised with your house savings, you should first open a separate account only for that.
To make it more likely that you will save, it may also be a good idea to open an account which you can’t take money from online easily. If you have to physically go down to the bank to withdraw, it’s less likely that you will dip into your home savings account.
Rename the Savings Account
Even if you already have a separate savings account you’ve been using in a casual fashion, renaming this to ‘House Fund’ or ‘Deposit’ and knowing the amount you need to save can give you a more determined mentality about what the account should be used for. It can feel more of a motivation to physically see what you’re saving up for.
Set a Budget
It’s a good idea to set a home buying budget, with a rough idea of how much you’ll need to save (such as deposit amount) so you have a specific figure you’re aiming for.
When setting a home-buying budget, understanding all the fees involved and your deposit amount is important. It’s a good idea to explore your mortgage options and speak to an advisor so that you can work out the highest amount you will be able to gain for a mortgage.
As a first-time buyer, you can also look into a help to buy scheme which may mean you need less deposit than you first expected.
Make a List of Expected New Home Outgoings
If you’re buying for the first time, with this being your first home you’ll be running independently, you may not be fully aware of how much utilities and general running costs are. Understanding this will really help you plan for your budget and knowing how much outgoings will cost every month will also help you understand the amount of monthly mortgage repayments you will be able to comfortably afford.
Do your research into the average costs for electricity, water, and gas and set monthly costs such as your food bill.
Make a List of Everything You Will Need to Buy from Scratch for Your New Home
Saving up for your first home doesn’t just mean making sure that you have the initial fees and deposit. There will be a lot needed for your new home if you’re buying everything from scratch, so getting organised with this will help you to save extra for everything you need, too.
Items like this to consider include:
- Furnishings like a sofa and bed
- White goods for the kitchen, like a fridge
- Kitchen essentials, like mugs, pans and cutlery
- Curtains and blinds for all the windows
These are just a few examples of what you might need straight away.
You may even want to begin buying smaller bits before you officially move, or even request them as gifts if it helps to save you money.
Being more organised with these tips will help for a more successful moving journey.