5 top tips for getting onto the property ladder
Getting your foot onto the property ladder can be an achievement which feels out of reach for many people, however, it can often be a much more cost-effective than renting. It may seem that buying your home is unaffordable, but if you take these points into account, you may find that owning your own home can become a reality – even if you don’t have a massive deposit to spare. There is always a way if you have the desire to do something and this includes becoming a home owner.
The right location
It is important to consider the location, as you can dramatically reduce the cost if you choose to stay out of a busy city, for example. It may be that your dream home is situated in Central London and this would be a great location for getting to work etc., but it is one of the most expensive places to buy a home. You’ll find that prices will drop dramatically out with the city and it may make it more affordable to buy. Wherever you reside, it is worth looking at other areas nearby to see where you will get the best deal.
It may be that the government will be able to offer you some help with buying your own property. There are a lot of initiatives out there for first-time buyers, such as shared ownership, where you share the property with the government and pay more as you can. This is a good way to ease you into owning your own home. There is also the help to buy scheme, which is where you pay a lower deposit on your new property to make it more affordable. It is a good idea to ask around and find out what initiatives are running, as you never know what great deals you may be able to pick up.
Save your cash
It may seem impossible to get a deposit together, but if you try and put some money away each week, you could soon find yourself with exactly what you need to buy your home. If you save £20 each week, for example, you will have over £1,000 in a year. It is easy to spend £20 on things you don’t really need so make up your lunch for work, walk instead of driving and give up on your usual magazines for a while – and you will soon have the money you need to save for your deposit. Put your money into a regular savings account, ISA or even your own current account, as this will allow you to gain interest on all of your savings. You may need to be prepared to make some sacrifices for the things you really want and it will be worth it in the long run.
If you were intending on taking out a mortgage on your own and you really don’t have the cash to spare, it might be worth considering taking out a joint mortgage instead. You may have a partner who you can get a mortgage with, or perhaps one of your friends may be interested in this as an option if they are also struggling to get onto the ladder. It doesn’t need to be forever. When you get onto the property ladder, you may be able to look at other options in the future.
Borrow the cash
If you are certain that you will be able to pay it back and you want to buy your property sooner than later, borrowing the cash may be a good option. If friends or family can help you out, this is by far the most favourable option – as you (generally) won’t have the usual interest to pay back. However, if this is not a viable option, you may be able to take out a loan from your bank or local credit union. A payday loan could be another option if you can afford to pay it back when it is due. If you have a lot of other debt, it is advisable not to take out any more credit, but instead, try to save the required amount instead. The last thing you want is to start out your new life with a lot of debt hanging over your head.