When Karis Jacobs, a credit controller, lost her job, she thought homeownership was out of reach. But she and her husband George found a clever method that helped them save thousands and buy their first home. They used the 50/50 method, living on just half of their combined income, to save for a deposit. They also took advantage of the Help to Buy scheme to get on the property ladder. In this article, we delve into their journey and reveal how they made their dream of homeownership a reality.
The dream home
Karis and George moved into their two-bedroom house in Pease Pottage, West Sussex in April 2022. The house exceeded their expectations with its open-plan layout, spacious bedrooms, and a kitchen island. It also had a south-facing garden and a large driveway with parking for two cars. The couple instantly fell in love with their new home.
The 50/50 method and Help to Buy
After losing their jobs, Karis and George had to use their savings to support themselves, leaving them with almost no money for a deposit. But after securing new jobs, they decided to save for their dream home using the 50/50 method. This method involves living on just half of their combined income and living frugally. They also took advantage of the Help to Buy scheme, which allowed them to put down a deposit of just 5% and provided them with an equity loan. The couple managed to save around £34,000 for their deposit.
The savings journey
Karis and George reserved their home in March 2021 and started saving in earnest. They had been living with Karis' parents in Horley, Surrey, since 2018, and initially paid rent. However, they stopped paying rent after losing their jobs in August 2019. They relied on their savings until they found new jobs and had to rebuild their savings from scratch. The couple lived on one person's salary and put the other straight into savings. They sacrificed their social lives, canceled subscriptions, and cut back on expenses to reach their savings target of £2,000 a month. The Covid-19 pandemic made it easier for them to save as they couldn't go out or take holidays. They also had a smaller wedding than planned, which allowed them to put more money towards their deposit.
Furnishing their home
Karis and George spread out the cost of furnishing their home by buying items in stages. They picked up smaller items like kitchen utensils as part of their weekly shop. At the end of the month, they used any leftover money to buy furniture or save for upcoming expenses. They also purchased a furniture package from the homebuilder, which included carpet, flooring, kitchen appliances, and turf. Their saving habits put them in a good position to afford this additional expense.
Advice for first-time buyers
Karis and George's advice for first-time buyers is simple: save as much as you can and don't rely on anyone else to help you. They also recommend shopping for furniture as and when you can to spread out the cost. Despite the sacrifices they had to make, they believe that homeownership is worth it in the end.
Buying a home can be a daunting task, but Karis and George's story shows that with determination and smart saving strategies, homeownership is within reach. Whether you're considering the 50/50 method or exploring government schemes like Help to Buy, there are options available to help you make your dream of owning a home a reality.
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