Would you sacrifice life’s luxuries to get on the property ladder?

Would you sacrifice life’s luxuries to get on the property ladder?
Posted by Fernando Mediavilla

It’s widely reported that people have difficulty getting onto the property ladder due to the rising costs of homes and the deposits required to buy one. But a new report indicates that many first-time buyers are not prepared to go without their mod-cons in order to save the cash they need.

Building society Principality interviewed 1,000 people across England and Wales who are saving for their first home. Many of those said they were not willing to give up some of the finer things in life such as beauty treatments or other non-essentials like trips to the coffee shop. 

Only 42% of the people asked admitted they would give up cable TV like Sky or Virgin Media and just 12% said they would give up their smartphones, which can cost hundreds of pounds each year. And what about holidays? Nope – 56% of people interviewed are not prepared to give up a little sun, sea and sand each year to save.

Some handy info to put it into perspective is that the average price for a first home in the UK is £169,414. The building society revealed that saving £350 each month could add up to over £4,000 a year and this could be double if a couple saved together. The survey also uncovered that people were saving around £286 per month for a deposit, but spending almost £218 on other items they referred to as ‘necessities’.

It wasn't all bad news and spending for first-time-buyers though. The people asked were prepared to give up other items, like takeaways, dining out at restaurants and taking taxis in order to save their pennies. If you tally up the amount you spend on those things each year, could you be on your way to saving more?

 

Did you know Outlet offers you access to property-related financial services, including mortgages, loans and insurance? Click here for more information or call 020 7287 4244 and we’ll help you take control of your financial future.

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