In recent years, it has become more difficult to get onto the property ladder. House prices have increased, the demand for affordable housing is rising, and many mortgage lenders require a substantial deposit. If you’re trying to realize a dream to own a home, there are ways to make buying more affordable. Here are some top tips to consider.
Expand your search area
Location is one of the most influential factors when it comes to comparing house prices. Often, moving a few miles or exploring different parts of a town or city can open up a wider range of properties and help you find houses or apartments that fit within your budget. If you’re looking in areas that are already popular and sought-after, expand your search area slightly and seek out up-and-coming neighborhoods. By being more flexible, you can often get more for your money and you may find that competition among buyers is less fierce.
Consider different types of properties
Many of us have to compromise when it comes to buying our first homes. One option to consider if you can’t afford the dream house at the moment is to view different types of properties. You might find that apartments and condos are cheaper than houses, or you might discover that mobile homes check all of the boxes at a fraction of the price of a detached house. Try to be open-minded and take the time to look around and see what you can get for your money. It’s also worth thinking about taking on a project. If you’re desperate for a house, for example, but you can’t afford one in pristine condition, you could save money by doing renovation work or redecorating yourself.
Save as much as you can before you apply for a mortgage
Most buyers put a deposit or downpayment on a house and then borrow the remainder from a mortgage lender. If you plan to take out a mortgage, it’s wise to try to save as much as you can before you apply for a loan. This will enable you to access preferential rates so that you pay less interest. It’s also advisable to try to improve your credit score before you take out a mortgage.
Look for potential
If you’re looking to buy a house that you can grow into, it’s often a lot cheaper to search for a home that has potential, rather than buying a bigger house. If you can’t afford a large family home, for example, you could buy a smaller house and then extend or convert loft and basement spaces as and when you can afford to. This will enable you to add value to your home and put your stamp on the renovation.
It’s no secret that many people are struggling to get onto the property ladder. If you want to buy your own house, but you’re finding it tough to take that leap, there are ways to save money and find affordable homes. Consider expanding your search area and viewing different types of properties, save as much as possible before you apply for a mortgage, and look for potential.