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How Can I Get On The Property Ladder?
27 May 2021
Every day, more and more Millennials are becoming more financially savvy. If the events of the past year taught us anything, having a solid financial standing is particularly important. To help with their long term financial position, more young people are asking themselves: “How can I get on the property ladder?” With a few handy tips, you could be on your way to homeownership today!
Start Saving ASAP
According to The English Housing Survey, the average deposit for a first home has fallen a significant amount, but a home deposit still hovers around £45,000. That can seem like a far reach for a lot of first-time buyers.
Don’t let that stop you from getting on the property ladder! In your monthly budget, set aside a certain amount to save and watch that grow over time.
Certain accounts like a Lifetime ISA or a Help To Buy ISA come with a 25 percent government bonus to your savings. That can really add up over time and get you kick-started on your path to homeownership.
You can try to invest your money in the stock market, for example, by picking them yourself or even try picking stocks through a service, but remember, there’s always a risk that your portfolio can go down as well as up!
Hire A Mortgage Advisor To Devise a Budget
When it comes to something big like buying your first home, get professional help. A mortgage advisor is the best person to talk to when it comes to bridging the gap from renting to owning. They can assess your income, savings, debts, and give you a realistic estimate of how much the bank will loan you.
Talk to a mortgage advisor before you begin your house search, so that you can devise a realistic budget from the get-go. Financial terms and budgeting can be confusing, but a mortgage advisor will explain it all to you and help you sort it out, so you can begin looking at properties within your budget. You don’t want to fall in love with a property only to find out its way out of your price range.
Don’t Forget To Research
As stated before, the heartbreak of falling in love with an out-of-budget property can take the wind out of a first time buyer’s sails. This can be avoided by doing the research before stepping onsite.
Look at what areas you want to buy in, and consider your own needs and desires in terms of property before you begin the boots-on-the-ground search. Thanks to the internet, research is easier than ever! Don’t be afraid to look into all areas, you might find a perfect property in a place you hadn’t considered before. Research can expand your scope of search and also give you a realistic expectation of what to look for in your price range.
Prepare Your Paperwork
Before your offer is accepted, have a file with the various required paperwork ready to go. You will need copies of your ID and utility bills in your name to share with your real estate agent. Ask both your real estate agent and mortgage advisor what paperwork they will require for filing, so you can keep the proper records they need to help you get on the property ladder.
You want to be prepared to get in the mortgage process, so make sure to keep your mortgage advisor in the loop with all necessary paperwork. Things may need to be submitted, so keep a file with copies of everything. You want to be set up for success when an offer is accepted.
When it comes to purchasing a house, it rarely sticks to the timeframe people hope for. It is typical for first-time buyers to spend months finding their dream home, and then actually making the purchase can take time as well. It’s easy to get bogged down in this long process, but don’t let the extended timeframe prevent you from getting on the property ladder!
Buying a home is one of the biggest financial decisions anyone can make in their life, so it befits a first time buyer to not rush this process. Think about it this way: a home is not just a personal investment, it’s an investment for your family, and any future generations to come after that. Keep the big picture in mind when you’re going through the hard parts.
Find a Good Estate Agent
This ties in to the research portion, ensure your estate agent is licensed and fully capable to help you find a house. Don’t just pick the first one you see, consult with several estate agents and find one that works well with you.
A good estate agent should only show you properties that are realistically within your desires and budget. Some greedy agents will push for a sale, either of a house that is not within your criteria or too expensive and will later lead to financial trouble. You don’t want to end up with a house you don’t love or a house that you can’t afford.
Getting on the property ladder is a long process with a lot of steps involved, but with time, research, and professional help you can start on the road to homeownership. While the process may take a long time, becoming a property owner is a great way to secure financial stability for yourself and future generations.
Even though it may seem like a lot, remember the big picture and break it down into actionable steps. The journey of a thousand miles starts with a single step, so start saving today!