Published on May 30th, 2016 | by Martin Clancy
First time buyer? Top tips for saving your deposit
Guest post by Bank of Ireland. If you’re thinking about putting down roots with your first home, then you’ll know that a deposit is necessary to get you on the property ladder. The Central Bank rules mean you’ll need a deposit of at least 10% of the value of the property you wish to purchase.
We’ve got some top tips to help you get saving & make that dream home a reality.
It’s essential to get your house in order. Keep track of all incomings and outgoings over the course of a month. This will give you a clear picture of your finances and help you set a realistic saving goal. Remember to factor in any big expenses that you know are coming up. There are lots of simple budgeting tools that can help you out -for example MABS.ie has lots of helpful resources on their website.
Rents are on the rise nationwide (see Daft Q1 Rental Report), so you’re likely to be spending a big chunk of your income on your current abode. With the shortage of properties & high demand in urban areas, your rent is unlikely to reduce in the near future. Moving back to your family home temporarily offers the best potential for savings and could have you collecting the keys to your new pad a lot sooner. If that’s not an option then moving to a smaller rented room /or to a cheaper area will help increase your monthly savings pot.
Once you’ve tracked your spending for a while, you’ll start to see how the little things can really add up. Forgoing your daily caffeine fix may seem like small change, but a daily habit could cost you €20 a week.
Grabbing lunches out or a weekend takeaway may be easy, but if you can plan your meals and do a weekly food shop accordingly, you’ll soon see a difference in your bank balance. Your freezer is your friend-; cook extra food for another day to save time and money.
While nights out can be inevitable, overspending can be avoided. Plan in advance to share taxis with friends or hop on the bus if at all possible. Take out a set amount of cash before you head out & try not to use your card.
At home make an effort to switch off all appliances when you leave a room. Keep an eye on how much heating you’re using and aim to only turn it on when necessary. Installing energy-saving bulbs is a simple way of reducing your energy consumption.
Getting the best deal for your phone, TV, internet, insurance & electricity can take some groundwork, but there are savings to be had. Use price comparison sites such as Bonkers.ie to compare packages and ring your current providers as they can often offer you a better deal.
Running a car can be very pricey. If you can ditch your motor in favour of public transport or even a bike (save on the purchase price by using the Bike to Work Scheme) you’ll save a packet. Get yourself a Taxsaver commuter ticket through work for further savings on your bus/rail/luas tickets.
Sell Sell Sell
If you’ve got anything lying around collecting dust, then try to sell it online. One man’s rubbish is another man’s treasure. Our friends at Adverts.ie & DoneDeal.ie make selling your unwanted items easy, so do a clear out & see how much cash you can make yourself.
Saving for your first home? Get your savings working harder with MortgageSaver from Bank of Ireland and enjoy a 10 per cent bonus on your savings* when you draw down a Bank of Ireland mortgage.
Terms and conditions
* Bonus is 10 per cent of the highest regular savings balance in the MortgageSaver account, subject to a limit of 3 per cent of the mortgage. Open account before 31st December 2016. Bonus is subject to DIRT at the prevailing rate. * Based on saving from €200 to €2,500 per month for at least six months and no withdrawals in the first six months. Lump sums of up to a maximum of €20,000 permitted and if lodged within 30 days of account opening will also qualify for the bonus.
Offer available to first-time buyers who draw down a Bank of Ireland Mortgage within 30 months of account opening. Not available with any other offer. Lending criteria, terms & conditions apply. Subject to criteria. See bankofireland.com/mortgagesaver for details.
Bank of Ireland Mortgage Bank trading as Bank of Ireland Mortgages and The Mortgage Store is regulated by the Central Bank of Ireland.
Bank of Ireland is regulated by the Central Bank of Ireland.