How many times have you heard the phrase, ‘home ownership is the key, renting is dead money’, usually from a ‘mature’ member of your family, or a well-meaning established house owner.
Well, it may be true, renting a house, that is owned by someone else, means that although you do have a home, you are in fact paying the house owner for the privilege of living in his house, and more than likely paying HIS mortgage, via your rent, but you are not benefitting financially yourself from actual homeownership.
So I guess in effect, yes, your money is ‘dead’ to you. You’ve paid your monthly dues, it’s gone. But the guy who actually owns your house, is paying off his mortgage and is one step closer to owning his house outright, or is happily stashing his rental income, towards his pension, or simply living off the rental income you are providing for him.
He’s in the win, win situation.
If only life was as simple as proving to a mortgage company that you CAN pay their monthly repayments, because, in a roundabout kind of way, you already are, just to someone else.
But we know it doesn’t work like that. There is the small issue of finding a deposit before you can apply for a mortgage, and we all know as well, that whilst you are paying the (often inflated) rent to your landlord, it’s almost impossible to save for a deposit.
It seems like you are the one in a lose, lose situation.
But with a bit of careful planning, and taking some strategic steps, you can start your journey towards your own home ownership goal and there are some handy tools out there to help you work out your finances so that you know exactly how to budget and get the keys to your own front door, that much quicker.
It’s true, that when you first look into the possibility of getting onto the property ladder and owning your own home, it seems impossible. The figures quoted are far too scary, and it all seems impossible. But with age on your side, and your career prospects looking good, then nothing is impossible. You just have to have faith in yourself that you can, and will do it.
Don’t get hung up on saving, or denying yourself treats, and nice things, you still need to live in the moment. But tucking away the odd £20 here and there, maybe saving those birthday notes that come your way occasionally, is a good thing, and you won’t miss it. As well as a structured savings plan from your salary, these little bits all add up.
No matter how old you are, if your life goals include homeownership, then get started as soon as you can, and use all the information and tools out there to help you get where you want to be. Yes in the meantime, you may be lining someone else’s pocket with your monthly rental, but your day will come eventually.
And when you finally get the keys to your very own front door, trust me there is no better feeling.