The current economic crisis has had huge repercussions for those wanting to buy their first home or move to a different property. Mortgage rates are high, property prices are high and the cost of living has made home ownership unaffordable for many. If you’re looking to get on the housing ladder, then you may need to find ways to increase your income, reduce your outgoings or alter some of your plans.
Research The Situation In Your Area
Not every state, city, and town is being affected at quite the same level. Before assuming the worst, look at the property prices in your chosen area, read this article by Armand Candea and speak to some local realtors. They will be able to give you a clearer picture. At least you’ll be starting from a sound knowledge of the situation.
Reduce Your Costs And Wait It Out
Saving for a down payment is difficult at the best of times. With the cost of living rising, it can be difficult to pay for the everyday essentials, never mind put aside to save.
In this case, you may have to put your plans on hold until the economy begins to recover, or financial institutions try and boost the economy by offering more attractive mortgage rates.
It’s a good idea to try and reduce your outgoings as much as possible so that you’re saving what you can. That way, if there is an opportunity, you can pounce on it.
Rethink Your Housing Choices
If the type of property you want is currently out of reach, are there ways around this? For example. Could you afford a slightly smaller or more run-down property now, which you can then fix up and extend over time when you have the money? Speak to a realtor and find out which areas are expected to become popular in a few years through investment. Snapping up a cheaper property in one of these areas could be a smart move when the market turns.
Shared Ownership Options
Common in parts of Europe, there are some schemes that allow you to co-own a home with a property company or management organization. This allows you to own your home, and then at a point in the future, you can choose to buy out the other party for full ownership.
Earn Extra Money
Now, most people are already working at full capacity just to pay the bills and don’t have extra time or energy to do anything else. But there are some ways to make additional money online that can add to your down payment fund. Stay away from anything that looks too good to be true as it’s usually a scam. Perhaps you can use existing skills to sell services on sites like Upwork, Fiverr, or PeoplePerHour. Even if it’s just a few dollars a week, it will all add up over time.
Unless you’re financially independent at the moment, the current state of the economy is going to impact property buying to some extent.