Alternative Ways to Save for a House

Alternative Ways to Save for a House
Alternative Ways to Save for a House

Buying a house hasn’t always been so difficult. As late as 1990, the average American property was a mere $101,100. Before then, house prices were in the tens of thousands. However, the increase in price since then has been astronomical. You’ll now need around $375,000, although this value is much higher in some states. If you’re buying your first home, here are some alternative ways to raise the funds you need.

Invest in NFTs

NFTs have become one of the most financially savvy investment opportunities. The most expensive one is worth a staggering $91.8 million, making it more valuable than Vincent van Gogh’s Vase with Fifteen Sunflowers. While the one you invest in won’t be worth this much, there’s a good chance it’ll rise in value over the next few years.

23% of American millennials now collect NFTs and it’s a great alternative to a regular savings account. A typical savings fund has a tiny interest rate that doesn’t even match the rate of inflation. While investing in NFTs is always a risk, the pay-off can be huge, bringing in enough money for a young person to buy their first home.

Create a Crypto Savings Fund 

Another way to increase the return on your savings is to use a cryptocurrency savings account. Unlike a regular savings account, this can increase your investment as the value of the cryptocurrency rises. Of course, cryptocurrencies can rise and fall in value, meaning that this is a strategy that carries some risk.

A regular savings account is definitely safer, but it’ll take a long time to build it up high enough to buy a house. The cryptocurrency, Bitcoin, is experiencing an annual growth rate of 113%. This is far higher than any interest rate you’d be offered by a bank. Some experts believe that Bitcoin will be worth a staggering $100,000 before the end of 2022.

Play the Stock Market

If NFTs and crypto aren’t up your street, then you could try good old-fashioned stocks and shares. Unlike a regular savings account, they can increase at higher than the rate of inflation. This means that, if you invest wisely, you could end up growing your initial investment quickly. Rather than buying individual stocks, using an index fund is your safest bet.

This is a passive strategy, in which you put the money in and it grows according to the overall financial market. This offers a greater return than a traditional savings account. You can then use this money to put a deposit on a house or to pay back your mortgage. Check this site out for more help and advice on securing a mortgage to buy your first home.

Buying a home on a modest income requires some smart financial planning. You’ll need to find investment opportunities that help you grow a small upfront cash injection quickly and sustainably. Investing in NFTs and crypto could be a winning solution, but traditional stocks can also help you save up to afford a mortgage.