When anyone mentions Las Vegas, they automatically think of pool parties, casinos, and wild nights on the town. Ask anyone who lives here, and they’ll tell you that away from the Strip the realities of living in Vegas couldn’t be more different.
If you’re looking to move to our beloved city in the desert, here’s what you need to know about saving for your dream Las Vegas home.
1. Start Small and Save
Your down payment is what will determine whether you get approved for a mortgage or not. On average, you’ll need to save between 3% and 6% for a down payment, depending on your credit score.
Most personal finance books recommend saving to build good habits. Reinforcing those positive spending habits early can make saving for a Las Vegas home a breeze going forward.
Remember, save a penny a day and it will soon add up.
2. Get Into Investing
By far, the easiest way to save up the necessary funds to move to Vegas is to start investing with a small amount of money. You don’t need to be rich to invest. With low-cost investing apps now available, it’s never been simpler to make your money work for you.
We recommend getting started with platforms like M1 and Robinhood. You can read our M1 Finance review here for more information.
At this early stage, stick to conservative, low-risk investments. Moving into day trading early will likely lead to you blowing your account and putting your Vegas dreams on hold for the foreseeable future.
If you need some investment preparation and training, read this review on TopStepTrader.
3. Look for a Side Hustle
Not everyone can simply go out and get a job that pays more. Use your free time to search for a side hustle.
Even if you make just a few extra dollars per month, the equivalent of an additional $10 per day adds up to $3,650 extra in your pocket by the end of the year. Never underestimate the power of baby steps.
Side hustles can range from babysitting your neighbor’s kids to starting a freelance graphic design business. Whatever you do, understand that it will take time to build up your client base and generate a consistent income.
If you have no prior experience, read this review on Survey Junkie. It’s a platform that allows you to create a side hustle without any skills or previous experience.
4. Trim Your Budget
It’s amazing just how few Americans know how to create a realistic budget. If you’re unaware of your incomings and outgoings, how do you expect to be able to save for a down payment on a house?
Budgets don’t have to be complicated. A simple spreadsheet with all your income and expenses is all you need. Creating this document offers you a high-level view of your finances and where economies can be made.
It’s one of the easiest ways to make a profit because cutting out a single bad habit could potentially add hundreds of dollars to your savings account.
5. Clear Your Debts
Did you know that most Americans who make the minimum required repayment on their debts are only covering the interest and not the principal itself?
Debt represents a major drain on your ability to save for a Las Vegas home down payment. Focus on aggressively paying down your debts now.
With the average interest rate on credit cards being 16.28%, it’s not difficult to see how damaging debt can be.
Plus, mortgage lenders use your debt-to-income (DTI) ratio when determining whether to offer you a mortgage and, if so, how much they’d be willing to lend.
Chopping up your debts can potentially save you thousands on your Las Vegas home.
6. Consider More Affordable Housing
When it comes to housing, people often like to wait and save until their dream home comes along. Instead, why not get your home sooner by opting for a more affordable area or scaling down your expectations?
Due to the magic of mortgage refinancing, nothing is stopping you from moving and upgrading, as your savings allow. Even on a 30-year fixed mortgage, there’s nothing to prevent you from upgrading in three to five years.
If you want to become a homeowner now and begin generating equity, starting lower on the housing ladder could be the best way forward.
Nothing beats living in the Nevada Desert, but saving for a down payment on Las Vegas real estate can be tough. This is an investment that has the potential to repay itself many times over because money, properly invested in the Vegas real estate market has a high chance of growing in the years ahead.
Vegas is a highly desirable location to both live and work. Start saving for your down payment today and join one of the most vibrant communities in the country!