Even if you’re on a low income, there are plenty of ways to get on the property ladder. In most cases, you don’t have to earn a fortune. You just need to make a few small lifestyle changes and modifications. Here’s what you need to do.
Start Saving ASAP
You might think that a lot of the things that you spend money on in life are necessities, but they are actually luxuries. For instance, going out shopping on a Saturday is a luxury, not something that you have to do.
Unfortunately, many of us are in the habit of thinking that we actually need to buy a new bag every couple of weeks. And that totally craters our finances. We just can’t build up money in our savings accounts when we carry on like that.
To get onto the first rung on the housing ladder, you’ll need to make sacrifices. Usually, that means just cutting out all of the things that you don’t need to spend money on and going to the park instead. Find things to do that are free or mostly free, and stick with them.
Use A Help To Buy Scheme
Depending on where you live, you could also enrol in a help-to-buy scheme. FHA FAQs talk about this in more detail. Essentially, these schemes lower the cost of borrowing or reduce the deposit that you require to buy a home. Both ways allow you to get a foot in the door and begin benefiting from the overall rise in property prices that seems to have gripped the western world over the last couple of decades.
Be More Realistic
Buying your first property is always challenging. Not only do you have to save up for a deposit, but you’re also limited by your existing budget. You don’t always have a huge amount of money.
Try to be more realistic about the types of properties that you view. Your first home is unlikely to have the same quality as your parents’ final home. Instead, mostly, you’ll be looking at an entry-level property or apartment, and there may be compromises you need to make.
In general, it is better to live in a good area than a good house. So if you find a street that looks good, but the property isn’t up to your standards, consider going for it anyway. The price will likely rise, particularly if you make improvements over time.
Speak To A Mortgage Broker
Mortgage brokers are people who specialize in helping their clients find the ideal mortgage. They are often knowledgeable and can tell you precisely where you stand right now. They may be able to let you know what you need to do to get the home that you want or point you in the right direction. Checking your existing income and asset levels will also make it easier for them to find products for you.
In summary, getting on the housing ladder fast is possible, but you’ll usually need to make sacrifices temporarily.
MORTGAGEMORTGAGE INFORMATIONSpeak To A Mortgage BrokerStart Saving ASAPUse A Help To Buy SchemeWhat To Do To Get On The Housing Ladder Fast
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