Do you own your house?
Did you take a mortgage to buy your house?
I hope to share with you the details of how we are going to save the money to buy our house using cash in just 4 years.
This is going to be exciting series as I will be posting updates on the last days of each month.
Buying Our Council House
My husband and I intend to save money to buy our council house we are currently living in at the moment.
We have fallen in love with this house and its location is good.
Buying our council house makes sense as we can take advantage of the right to buy scheme as we have lived in this council house for over 4 years now.
Right To Buy Scheme
The right to buy scheme means we can buy our council house at a discount value of the actual market value of the house.
Using the information on this government website our discount will be 35% plus 1% each additional year we live in the property.
Total Money We Need To Save
We have used the right to buy calculator on HM Government website, which works out an estimation of how much the house will cost after the right to buy discount has been applied.
The cost will be around £46 000 after the discount has been applied. We live in an area were house prices are lower as compared to other places in the country, which is a plus side for us.
We intend to buy the house using cash instead of taking out a mortgage for the reasons we have mentioned in this post: 3 Reasons I Chose To Stay Out Of Debt. We intend to save the money then buy the house.
So far in our savings accounts, we have £11 500, which we will put towards the savings for the house.
In this case, this means we need to raise £ 34 500 in the next 4 years. Yes, £34 500 might seem a lot of money I know, but we are so determined that we can do it.
Monthly Saving Plan
So how much will we have to save every month you might be wondering?
After doing the calculations we will need to save an estimate of £605 monthly this is after we have included bonuses we will receive from the government, as we plan to take advantages of saving our money in 2 separate High-Interest ISAs.
Each month we will have to save £605 to reach our goal in 4 years.
It’s going to be difficult but the end result is more rewarding.
There will be cuts to be made and sacrifices as well.
We will have to make cuts to unnecessary expenses in our family budget.
We know some of the cuts not everyone in our family will like them but it has to be done.
We will not impose the cuts but we will get everyone involved even the kids so that we agreed on things.
More Post To Come
In the next posts, I will give details of the savings accounts we intend to use which have good rates of interest.
Each month I will also share with you a monthly saving update showing you how much we have saved that next month and how far are we from our goal.
I will be also posting tips for saving money for buying a house that we will be using in our family.
I will also be posting the expenses we will cut in our family budget.
So stay tuned for the next post.
Over to you…
Are you saving money to buy your own house? Are you saving for your deposit to buy a house? Do you own a house?
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