Lifetime ISAs (LISA) were launched in 2017 and they were designed to replace help to buy ISAs which can no longer be opened. LISA can have up to £4,000 put into them each tax year until the person reaches 50. While the LISA can be used for retirement, many use it for a mortgage.
The government will add a 25 percent bonus to the savings up to a maximum of £1,000 per year.
If used in the most efficient way possible, savers can receive a bonus of up to £33,000 for a home.
The bonus is, rightly so, the main focus for many savers. However, it should be remembered that the LISA offers all the regular features that savings accounts contain.
This includes an interest rate which will boost the pot further. If the amount in the account is substantial, the interest earned can really make a difference.
However, James details that the fluidity of the job market can also be a helpful tool.
As he revealed, personal skills now have multiple avenues for bringing in income: “Use your skills to earn money on the side with sites like Upwork, Fiverr and PeoplePerHour. I was able to find copywriting opportunities as a way to top up my deposit.”
For a lucky few with talent and patience it may even be possible to make some money from passion projects.
While the odds may be against them, some people should take the chance on projects they feel have potential:
“This isn’t for everyone, but I started a couple of blogs which I was able to get traffic to and monetised the sites with affiliate links and ads.
“These blogs ended up earning a few hundred pounds per month, which went straight into my deposit savings.”
James was able to do all this while living alone which makes it all the more impressive. Many young people who do end up buying a property usually save money by living with their parents.
Doing so usually means paying less in rent and bills, a common barrier for deposit savings.
Data from YouGov details that there are many cities across the UK where the percentage of working people living with their parents is particularly high.
Somewhat surprisingly, London does not top the list, Bristol currently has the highest figure of 16 percent.
Ross Counsel, Director at Good Move hopes the tips given here provide encouragement for people who don’t have the option of living with parents: “For those who are lucky enough to be able to save money by living with their parents, this can be a fantastic technique to quickly save for a deposit.
“Not everyone is in this situation however, so hopefully these tips will go some way to helping people raise money for a home while living independently”