Need some really great down payment savings tips? Here are 11 tips to get you started.
Being a renter does have some advantages. No paying off the mortgage, no property taxes, and the landlord takes care of any maintenance and repair costs, usually above $100. However, renting does have one major drawback: You are spending money on rent without gaining any equity from the home.
Many renters want to own their home, but struggle to find the cash needed to make a down payment on a home.
In fact, a recent survey conducted by the website gobankingrates.com showed that a fifth of adults in the United States do not currently use a savings account or even have one for that matter. Even more troubling is the fact that a third of those that do have a savings account carry a zero balance.
LasVegasRealEstate.com to the rescue! Below you will find 11 down payment savings tips to help you start saving and put aside enough funds to put a down payment on a home.
Down payment savings tips #1: Set a target
Knowing how much you can afford to spend on a property is crucial to help you identify how much you will need to save for a down payment.
After working out how much you need to save, you should compile a detailed saving plan to reach your target. Having a target goal to reach will help you buckle down and start to put money away. You will find it hard to save if you try and set aside an unknown amount of cash for a down payment. If you need help figuring out how much you need to save for a down payment just give our Preferred Partners: Lender a call and they can quickly help you eliminate the guesswork and figure out an exact amount.
Down payment savings tips #2: Work out your spending habits
Go through your credit card and bank statements for the last few months to find out where your money is spent. You can then focus on the areas of spending you can cut back on. There is always room for cutting entertainment expenses!
Down payment savings tips #3: Cut down on your cable bill
The average household bill for cable TV has rocketed in the last 5 years and now stands at nearly $100 a month, up nearly 40% from 2010. Unless you already have, cutting down on your cable bill is a great way to save money every month. If you just can’t bring yourself to cut the cord, you can talk to your cable provider and attempt to lower the bill and shop around for a better deal.
Tip #4: Get rid of your gym membership
Make the outdoors your free gym. Jogging, cycling, and hiking are all great exercise and don’t cost a penny.
Tip #5: Downsize your current rental property
If you currently rent a one-bedroom apartment, then downgrading to a smaller studio can save you hundreds of dollars a month. A smaller property also means cheaper utility bills.
Tip #6: Make some income on the side
Due to today’s technological modern world of mobile internet and smartphones, it is easier than it ever has been to make some money from a side job. If you own a car, then you have a huge advantage and can jump straight into work with opportunities like Uber and Postmates.
Tip #7: Get a high yield savings account
Leaving your savings in a checking account does not earn you any significant interest. Move your funds to a high yield account and get some interest on your savings.
Tip #8: Get a credit card with cash rewards
Drop the no-frills credit card that you currently have and get hold of a credit card with a great cash back reward scheme. Credit cards that offer a reward scheme usually have a higher interest rate, so be sure that you make regular on-time monthly payments to clear the balance.
Tip #9: Put aside your tax refund
It can be tempting to spend what you get back in your tax refund each year, but by putting aside any money returned you can make big steps to reaching your goal of affording a down payment.
Tip #10: Sell some of your stuff
Pick a day in the summer months with a forecast of good weather and throw an old fashioned yard sale. Post signs around the neighborhood in the days leading up to your sale and get online to promote it on facebook and craigslist. The more promotion you do, the more people turn out, and the more money you make selling your stuff.
Down payment savings tips #11: Sell your stuff online
Are some of your possessions valuable or highly sought after? You will probably get more cash by selling them online through eBay than you will at a yard sale. While larger items of furniture tend to sell better on Craigslist.
Thank you for reading our post, “11 Down Payment Savings Tips.” For more Las Vegas home Buyer tips, information on moving to Las Vegas, Las Vegas real estate market news, information on Las Vegas homes for sale, buying a home in Las Vegas, or general real estate information please visit our website www.lasvegasrealestate.com.