I’m Gen Z: I Bought My First Home at 23 — Here’s How I Saved for the Down Payment
Written by
Marc Guberti
Edited by
Rebekah Evans
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Homeownership is a significant milestone that can help you build wealth. Monthly payments go toward home equity instead of the landlord and you can establish yourself in a neighborhood. While rising housing prices have discouraged many Gen Z consumers, some people in their 20s saved up and put themselves in positions to buy homes.
Angelika Zaber is a de-icing and winter maintenance specialist who creates informative content on effective winter solutions. She resides in Skelmersdale, UK, where the average house costs a little under $200,000.
She bought her house at 23 years old with her fiancé and shared with GOBankingRates.com how she saved up for the down payment.
Live With Your Parents
Zaber mentioned how she had to use “extreme budgeting” to save for a down payment. The first thing she recommends is living with your parents.
“Firstly, I lived with my parents for as long as I could since it was much cheaper than renting and allowed me to put aside a significant amount of money,” she said.
The average rent in the U.S. is roughly $1,554 per month, according to a report by Apartments.com. That comes to roughly $18,648 per year. You can live with roommates or live in a studio apartment to save money, but you will save the most money by living with your parents. Zaber went that route when she saved up for the down payment.
Do Staycations Instead of Expensive Vacations
Zaber looked for as many ways to save money as possible and she quickly reduced her travel. However, that didn’t mean staying at home all year long. She offers some creative ideas for getting out while saving a lot of money.
“Before I started saving for a house, I would go on multiple holidays abroad every year, as I love to travel,” she added. “However, I realized this was costing me too much money so instead, I started doing staycations and, rather than my usual luxury holidays, I opted for staying in hostels or camping. It was honestly an amazing experience — I met so many people I wouldn’t have met otherwise and I still enjoy camping even now that I have my house.”
Cook Your Own Food
Takeout and dining costs extra money and you can free up space in your budget by cooking at home. Zaber makes that recommendation for people who are saving up for down payments.
“I made sure to avoid [takeout], limiting myself to just one per month and only going out to eat on special occasions. Instead, I cooked most of my meals at home, saving myself lots of money,” she explained.
Cooking is a valuable skill and you may end up enjoying it after some practice. You will also build up your savings.
Get Creative With Your Home Search
While a move-in ready home may attract more buyers, you can find better deals if you are willing to get more creative with your search. Zaber explained how she approached the home search with her fiancé and didn’t leave any stone unturned.
“A lot of the houses that my boyfriend (now fiancé) and I looked at weren’t ‘perfect’, but had the potential to be someday,” she said.
Fixer-uppers will cost less money than completed homes. Gen-Z consumers who are willing to put in some sweat equity can turn it into a fun project and make gradual changes to the property. It also comes with a lower down payment, making it easier to secure the property.
You Have To Plan It Out
“Plan ahead. Collecting enough money for the down payment can take a few years and that’s okay,” Zaber explained.
Saving up for a down payment doesn’t happen overnight. You will have to stick with an extreme budget for multiple years and stay focused throughout the journey.
The best goals often require long time horizons. While it requires a big commitment, it will be all worth the effort when you get the keys to your own home.
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