Recently I mentioned I bought my house when I was 22 years old. I had so many questions about how I bought this place and how I saved my money. I was asked if I have any tips or tricks. I figured I would write an article on how I bought this place and my tips and tricks on buying.
When you’re young, and I’m not a financial adviser or anything like that, I had very little idea what I was doing when I bought my home. I have learned a lot throughout the process. I thought I would dedicate an article to my best tips and tricks on how to buy a place in your 20s. It will include how to save your money properly when you’re trying to buy a home. If you’re interested in knowing my tips and tricks, please keep reading.
My first point is to work hard. This might sound like such an obvious tip, but I cannot stress to you enough how important it is to work your thumb off. I started working when I was 14 years old. I worked all the way through high school. I worked in every job you could ever think of. I worked in kitchens. I worked in bars. I worked in retail. I did everything and I always had a job.
I was working all through my high school years. Then, I went to university and I worked all through University. When I was at University, I was working on the weekends. I was working between my classes. I would work night duty. I basically worked whenever I could, and it really wasn’t an option not to have a job. My first tip for you guys is to work hard. There is no other way to save money, other than to work hard.
Learn to Save
This is a really tough one. I get so many questions on how I saved enough money to actually but this place. Saving is obviously very important, because when you go to buy a place you need enough money for a deposit. The only way you’re going to get money from that is if you saved it. While I was working, I always put away a lot of money toward my savings. Every month at times, I would make around $1000. I would always put away even more than 50% of that into savings. I’ll put away $700 into savings, keeping $300 of that. Rather than going out with friends, I put money into savings. It will be really hard, but my tip for you is to put away as much as you can.
My third tip is to sacrifice. This comes along with saving money. It isn’t easy, and I made sure that I let my friends all know when I was getting serious about buying a house. I told them, “You know what guys? I can’t come out to lunch all the time. I’m not going to be able to go to the clubs. I’m not going to be able to do all this extra stuff.”.
All the time you have to sacrifice. For me, it was that I wasn’t able to travel as much. I couldn’t go away on holidays as much. I couldn’t spend as much time with my friends. I couldn’t buy all the time, the latest clothes that I wanted. It simply wasn’t an options. It was really important that I sacrificed, because I had a main goal. To achieve the goal, I just had to sacrifice. I’ve sacrificed a lot of my life, my social life and a lot of my extra expenses. With all the money I was saving, it was going towards this house.
Live At Home As Long As Possible
My fourth tip is to live at home as long as you possibly can. Honestly, I know that’s not an option for everyone, but for me it was. I’ve always lived at home. I never moved out. I never rented. I knew that was something I was always going to do. My parents were really supportive of me living at home. Especially while I was at University. I was studying and not making as much money. They encouraged me, from the beginning, to stay at home for as long as possible.
By doing this, I could save save save. You’re not going to be spending as much money on food. You’re not paying rent, if your parents are nice enough to not charge you rent. You’re only going to be paying for your petrol and personal expenses.
My fifth tip is to set goals for yourself. For me, I knew that my next big purchase was going to be buying a house. I just had to set a goal on when I was going to do it and how much I was going to spend where I wanted to live. I just needed a goal, I needed some direction in what I was doing. I needed to save my money and really work on when I was going to buy that house. That way, I had something to look forward to. I had something to work towards. Make sure that you’re setting goals throughout the whole process, whether it’s going to be saving $5,000 by November, even if it’s just putting aside $5 per week. Your goal setting is going to help you out when it comes to the final thing.
Know What You Want
Tip number six is to know what you want. Do you want a house, or to rent an apartment? Do you want to live close to the city, or close to family, or close to work? It’s important to know exactly what you want, so when it comes to searching, you can narrow your searches a little bit. You can work out what’s going to work for you. For me, I knew that I wanted a little yard to an apartment. I knew that I wanted at least a townhouse with at least three bedrooms. That way, I have enough room to have someone stay, and also a spare room that I could maybe use as a beauty room or spare room. It’s important that you start to prioritize what’s really important to you. That way, it’s going to be so much easier when you finally start looking. You’re going to know exactly what you want.
Speak to Someone Who Knows More
Tip seven is to speak to someone who knows more than you. Go to a financial planner. Go to your bank. Go to a mortgage broker. Be careful who you go to. My first point of contact was with my bank, so I went there and said to them, “I want to know how I can work towards buying a house.” At this point, I was about 20 or 21 years old. I knew that was something that I wanted to do. I had no idea how I was going to get there.
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Unfortunately, the lady who I spoke to at the bank was useless. She said to me, “You have nowhere near enough money. You’re not going to be able to do it. The best advice I can give you is save, save, save. You need to be saving for at least anouther five years.” I thought I’m never going to be able to get a house. I went home and cried about it. That’s when my parents put me on to a mortgage broker. I was really reluctant to do this, because I had no idea what I was talking about. I sat down with them, and I told them about my experience that I had with the bank. They were very understanding and they said to me, “You know what? If you want to buy a house, we can do it.” They helped me through every step of the way.
When I was buying a house, they did a lot for me. They do a lot that you will not understand. I had no idea about all the paper side of everything, but they knew how to do it. If you are a little bit confused, and if it’s really daunting, go to someone who knows what they’re talking about. You will feel so much better because of it.
Be Willing to Compromise
My next tip is to be willing to compromise. This tip doesn’t feel very good, but it has to be done. You will have aspirations for your home. You want to live in a certain area, you want to be close to the city, close to your parents, close to your job, you want a four-bedroom house — something has to give. You won’t get everything you want. In my case, the house I wanted was over 500 thousand pounds. That wasn’t going to work.
I spoke to my mortgage broker. They took my wage, and the description of everything I wanted, and then told me what was realistic for me. The home I could afford was a lot less than I initially thought. With this news, I had to work out what I could afford. I still wanted to be close to the city, bit it meant moving a couple more suburbs out so that I was still close. That way it was in my price range. I couldn’t afford four bedrooms, but a townhouse became an option. You might be set on a beautiful kitchen and two bathrooms, or carpet and hardwood flooring. You won’t have that at first, but you could possibly get it later when you can afford it. The bonus of owning your own home is that you can improve it as you go.
Don’t Get Caught in the Moment
Buying a house is an emotional process. When you see a home that you really want, it can be difficult to move on because it isn’t affordable, or doesn’t meet other criteria that are more important to you. When you are in the moment, you feel like, “I need this house.” There are many homes. You won’t know the best home for you until you’ve seen many. Don’t be pressured thinking a home you want might be taken off the market. It is a big decision and you need to take time to think about it. You will be making payments on your new home for a very, very long time. On one hand, you will need to take a leap of faith that you can do this — on the other hand, you need to be level headed and make a home buying decision that makes sense on an intellectual level. If you find something that you love, but know you can afford — don’t buy it. You shouldn’t even be looking at homes that are way over your budget. I really hope you enjoyed this article.
My name is Natalie Boucher. I blog about all things beauty, fashion and lifestyle!