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Saving for a deposit

Spend a few years living like most people won’t, so you can spend the rest of your life living like most people can’t

Saving the funds for your first deposit can be difficult. With buy to let mortgages requiring around 25% in advance and the new LBTT, the deposit can be a daunting amount. But cutting back and living a lifestyle that most people are simply not willing to do, you could be rewarded with great returns in the future once your investment realises its potential.

So how can you save up this amount….

We there are no shortcuts unfortunately. However as the old saying goes “many a mickle makes a muckle!” and so here are our tips for getting the funds together

  • Set a clear savings goal as a percentage of earnings is best, stick to it and watch it grow
  • Keep savings separate from your own personal account- an ISA could be a good option that allows you to easily access the funds in an emergency, but offers a higher rate of return.
  • Cut back on monthly out goings- Gym membership that you don’t use? Credit card interest that you can balance transfer? shopping for premium brands when the non brand alternative makes no difference? Wardrobe bursting at the seams with nearly new clothes? All this can all add up.  Even small daily actions add up, a packed lunch for a week can be as cheap as a bought lunch for one day, a small Starbucks a day would add up to £684 a year – cut back on the outgoings
  • Get active, the great outdoors is generally free to access, a morning run might distract you from your evening night out with a drink.
  • Don’t be too hard on yourself! Everyone deserves a treat now and again, just keep it within reason and regularity!

Depending on your income and your dedication it will take different lengths of time to get the deposit together, but once you are on the ladder there can be easier ways to raise the capital for your next purchase, on your way to becoming a successful property investor.

Saving is not for everyone, but going back to the opening statement “Spend a few years living like most people won’t, so you can spend the rest of your life living like most people can’t” it can be done by the dedicated!

If you are considering a buy to let then get in touch and we I will be happy to assist in any way I can. Thanks

Richard

richard@cornerstoneletting.com