How to Afford Your Dream Home

Many of us have an idea of what sort of home we would like to live in. Our ideas will be very different from each other, but quite often it will be a very different home to the one that we are living in at the moment and it will quite often be an expensive home too. You may believe that you will never be able to afford your dream home or you may just hope that you will. There might be a way that you can afford it though.

Set your Sights Lower

It could be that you should start by perhaps setting your sights a little lower. This might seem like a cop out, but a large house is difficult to keep clean and in good repair and you will never make good use of all of it. The home you want could also not exist, be fictional or belong to someone else so that might mean that you will have to change your expectations. Think about what will make you happy in a home rather than what you would have if money was limitless and this could help to put together a slightly different dream. Of course, this might not work for everyone, but try to get a clear picture of what you really want before you start planning towards it.

Get on the Property Ladder

To start with it can be wise to get yourself on the property ladder. Buy a home of some sort. This is useful because you will be able to start saving money right away. This may sound odd, but it is often more expensive to rent a home than to buy one. You will also be making a payment towards the home every month. This is because you will normally make a payment monthly towards the mortgage and it will be made up of partly interest for the mortgage provider and partly a repayment of the mortgage. This means that you will be paying for the home. If you can overpay and out more money into the home then it will be a way of boosting the money that you have. When you have enough you will be able to sell that home and either buy a larger one or buy the home of your dreams. The money you put into your home will be increasing in value hopefully, as it is likely that the home will be increasing in value as well. Of course, the home of your dreams could be increasing in value too, but hopefully at the same rate. If you keep the money in a savings account rather than putting it in a home it is unlikely to increase in value very much, in fact interest can often be lower than inflation meaning that the money devalues rather than increasing in value.

Prioritise Your Spending

If your main ambition is that house, then you will need to prioritise it all of the time. This means that you will have to think hard about your spending. You will need to make sure that you are only spending money on the things that you need and then you can put every spare bit of money you have towards saving up for your dream home. Obviously, how motivated you are to do this will depend on how much you really want the house and perhaps how soon you want it. It may also be determined by what other things you want to buy and need to buy.

Increase Your Income

You may want to add to your pot more by seeing if you can increase your income. This will help it to grow more quickly than just spending less money. It might be that you will be able to get a better paid job or a second job. You might be able to take on occasional freelance work or earn money online. There are different options you can consider. You will need to think though, whether you will be able to cope with this, especially if you already have a full time job. Consider how much it will add to your house fund and whether it will be worth it considering how much leisure time you will have to miss out on. This will depend on what sort of a person you are, what you do in your free time, whether you have a family etc.

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