In today’s climate, buying your first home and getting onto the property ladder is tougher than ever. Yet, there is no need to lose hope, as there are a few things you can do that will make the process much easier. Buying a house is a major milestone in anyone’s life, so don’t feel discouraged when you see people buying homes in their 20’s, as it is very rare these days! So, here are a few tips to help you achieve your goal.
- Consider Savings As Essential Outgoings
When people’s wages come into their account, often people will think about what their essential outgoings are and then see the rest as disposable income. People don’t often consider savings as essential outgoings, so the amount put away can be neglected. If from the very beginning of the month you budget a set amount of money to go into a savings account, you will be surprised at how much you can save.
Yes, you might find yourself slightly short of cash at the end of the month, however this is a positive thing as you will learn to spend your money more sensibly. When you commit to a set amount, you will be able to reach your financial goals much quicker. If you do have anything else left at the end of the month, that’s a bonus!
- Make Use of Government Schemes
There are lifelines available that you should utilise to get some help when it comes to buying your first home. One of the best schemes available in the UK is the Help To Buy Scheme. Whatever you are able to save in the account, when you withdraw the money to go towards a deposit for a house, the government will contribute 25% on top of your savings. The maximum government contribution is £3,000, so after you have saved £12,000 you cannot benefit from the 25%. Yet, £3,000 for free is not a bad deal, at all!
In the USA, there are plenty of different government schemes available such as Homeownership Vouchers, FHA Loans, Programs for Service Members and Rural Residents. It is always worth looking into what your government is offering and taking any help you are entitled to.
- Look Past Cosmetic Features
Although you may think you need a huge deposit in order to buy a house that’s ready to move into, it is worth looking past the cosmetic elements of a home and considering whether it is structurally what you are looking for, as that is more difficult to change. When viewing homes, you may not like the kitchen cupboards, the wallpaper might be outdated and the bathroom might need a refresh, yet you are likely to get a much better deal on a slightly outdated home that you can easily renovate for next to nothing.
You can paint cupboards, strip wallpaper and change tiles relatively easily and investing some time and a small amount of money to make a few changes will help you to create a home that is perfect for you whilst also saving money. Brand new houses come with a premium price due to their convenience, yet you might be able to move into your own home much quicker thanks to a smaller price that comes with properties in need of a bit of TLC.
- Property Auctions
Another great way to get a good deal on a home is to buy a property through an auction. Residential property auctions allow participants to bid on properties they are interested in, often resulting in a below-market selling price. Auction companies will advertise the properties in advance, meaning you can arrange viewings and have surveys completed.
Then, you can attend the auction and start bidding. It is important to ask for a professional opinion about the value of the house and make sure you don’t go above this as you are likely to end up losing money when you eventually go on to sell it. Many auctions are now online which makes the process far easier so it is definitely worth looking at whether there are properties you are interested in. This could help you to get onto the property ladder far quicker and with less upfront savings thanks to the cheaper overall cost.
Saving for a house is hard work and can take years. Be patient and work hard to save as much as you can and these few tips should help you to reach your goal quicker.