The Real Estate Encyclopedia
Saving for a luxury property
Category - Global Real Estate - Europe Real Estate

Whether you're looking to buy a repossessed property at auction or a million pound mansion, the process requires some degree of saving. It's highly unlikely that potential homeowners will be able to front either total cash for the property or cash for a deposit, so it's important to save, save, save!

When it comes to deposits, the minimum amount you'll have to save for a deposit is dependent on the price of the property. Most mortgage lenders ask for a minimum of 10 per cent of the property price and, even then, not all lenders offer such rates. As such, it's best to try and save 20 per cent. For example, if you're interested in buying property for sale in Chepstow for 200,000 it's worth saving at least 40,000.

Buying a home is one of the most exciting times in anyone's lives and is likely to be the biggest buy you'll ever make, so saving is key. As a result, it's necessary to cut back on some luxuries. You may have to sacrifice the annual exotic holiday in order to save for a deposit, as well as transfer money into a savings account on payday. It's not nice seeing, for example, 30 per cent of your wages gone straight away and neither is cancelling the two week 5 star holiday to the Maldives, but it's all for a better cause.

Furthermore, you may have to exclude yourself from social events. Cutting down on the weekly trip to a fancy restaurant or a night on the tiles with friends may be painful but it'll be worth it in the end. For example, say you and a partner spend 40 each on a meal and 100 each on a big night out every week. That's 280 saved every week, 1,120 saved every month and 13,440 saved every year.

There's no two bones about it - saving is tough. However, with the right grit, determination and the target of a luxury property in Chepstow at stake, you'll find that maybe it isn't essential that you need to go for expensive drinks on a Saturday.
 
Category(s)
Global Real Estate - Europe Real Estate
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