Dreaming of owning a home but daunted by the deposit? You’re not alone! The average deposit for first-time buyers in the UK has hit a whopping £68,154. So, how long would it take to save this if you’re on a £30,000 annual salary? Brace yourself for 11 years and 4 months! But don’t lose hope; boosting your savings game can shorten this timeline.
Enter the Lifetime ISA (LISA): a savings tool that could cut down the saving time significantly. For instance, someone earning £30k a year could see their savings period drop to 9 years and 8 months thanks to the LISA’s 25% government bonus deal. However, remember that a LISA has conditions—it’s for first home purchases or retirement. Otherwise, there’s a withdrawal penalty.
Location matters too; property prices differ across the UK, making some areas more affordable. And if you’re targeting London, note that the LISA only covers properties valued up to £450,000.
Considering boosting your savings? Plenty of first-time buyers face the same challenge due to escalating house prices and living costs. Make the most of every savings option, and keep in mind that salaries tend to increase over time, allowing more to be set aside.
Here’s a quick look at how long it might take, based on different salaries:
– £19,000: 14 years 11 months (12 years 7 months with a LISA)
– £25,000: 12 years 8 months (10 years 7 months with a LISA)
– £30,000: 11 years 4 months (9 years 8 months with a LISA)
– £40,000: 9 years 5 months (8 years 4 months with a LISA)
– £50,000: 8 years 2 months (7 years 3 months with a LISA)
– £70,000: 6 years 6 months (5 years 11 months with a LISA)
– £100,000: 5 years 1 month (4 years 9 months with a LISA)
Remember, every penny counts, so consider other savings accounts with high interest to support your home-buying journey. Cheers to making your dream home a reality! 🏡✨