How To Save To Buy Your First Home in Brighton
Buying real estate is a significant milestone that we all hope to achieve sometime in our life. Generally, having a house bought with our very own hard-earned money is a lofty goal. It requires a lot of perseverance and mental fortitude to reach the point in life where you can confidently buy a house.
So if you are at that stage, congratulations! I’m sure that it was a tough climb. Here, I have compiled a list of tips for first-time homebuyers in Brighton. However, before we move to that, let’s first discuss why you should buy a house in Brighton.
Brighton is a coastal city in the UK. According to research, it is the happiest city to live in. Over 86.4% of its residents report that they are happy every day in Brighton. Now that’s a statistic you shouldn’t ignore. Aside from safety and price, another thing you should factor in when deciding where to buy real estate is the quality of living.
Dubbed as London-on-Sea, Brighton’s coast offers the high life of being in London without the hassle of being inside London. In fact, a huge percentage of employees in London live in Brighton. This way, they get the best of both worlds: a lucrative job at the capital and a walk on the beach during the weekends!
There’s no question that London is severely overpopulated. With space becoming more and more valuable, why would you add to the competition when there’s a better, cheaper alternative nearby?
As of April 2021, the average property price in London is £699 812. Let’s compare that to Brighton. The average property price in Brighton is £450 200. You’re staring at a quarter-million-pound difference. This is a massive jump in price, considering that Brighton is less than an hour train ride away from the capital city.
Considering all of these factors, it’s no wonder Brighton saw a huge jump in its population over the last few years. Ready to begin your journey? Here are some of the best tips for first-time homebuyers in Brighton.
Start Saving Early
When you’re looking to buy real estate, you need to start saving early on. Hopeful Brighton residents usually make the move to Brighton from London early on to save up on living costs. The difference in cost of living between London and Brighton is substantial, and there are a lot of expenses involved with buying real estate. Aside from the down payment, there’s the estate tax, closing costs, agent fees, moving expenses, and the construction costs if there are any design changes you want to make. You want to save at least 20-30% of the total contract price so you can save on interest fees.
Read here on How to Find the Right Home Specifically for your Needs.
Reduce Cost of Living
The biggest portion of everyone’s wages goes to living expenses. For many, their entire monthly salary goes to the bare necessities (i.e. rent, utility bills, transportation, groceries) and nothing more. If you want to save money fast, it’s time to reduce your living expenses.
For instance, consider living in a much cheaper neighbourhood. Many London employees live outside the capital. Neighbouring areas such as Brighton and Basingstoke are popular places to live in if you’re looking to cut down on expenses. The daily commute by train is just an hour, but you save hundreds, if not thousands, of pounds on rent, groceries, and utility bills.
Another option you can try is to downsize. Look for a smaller flat, so you can save on rent. Renting a storage facility in Brighton is usually the norm. By doing so, residents get to live comfortably despite living with limited floor space.
Cut Back on Luxuries
One of the best ways to save for a house is to cut back on the luxuries you have grown accustomed to. Buying a house is a big commitment. There are certain financial adjustments you need to make with regards to your lifestyle. For example, instead of going out thrice a week, you can limit it down to twice or once a week. Date nights will have to mean a home-cooked meal and a movie in front of the TV, instead of a fancy night out at a Michelin restaurant. This also means no more impulsive shopping sprees as you need to build a good credit score.
Compare Mortgage Rate and Fees
Different banks will offer different mortgage rates and fees. Before you sign an offer, make sure that you’ve canvassed for the best rates. The average mortgage interest rate is from 3.15-5%. If you can get a lower rate, then do so. There’s nothing wrong with having a couple more options, especially if the bank you decided sends you a rejection letter.
Buying a house in Brighton is no laughing matter. Not everyone gets the opportunity to save up for real estate, which is why, if given a chance, you should take it. Brighton is one of the happiest places to live in, perfect for both young professionals and established leaders of companies. While it might force you to lessen certain luxuries and affect your social life, you will realize that it is worth it in the end. Best of luck!