There’s no doubt about it, buying a house is one of the biggest investments you can make in your life and, with house prices at an all-time high, and expensive responsibility.
Buying your first home is a particularly expensive time, as you do not have the money made from the sale of an existing property to put towards your mortgage.
However, rather than resigning yourself to a lifetime of renting, it is possible to stick to a budget and achieving your dream of owning your own home. Here are three tips for buying your first home on a budget.
- Buy a property in an affordable location
It is a well-known fact that properties in certain locations are more expensive than in others, sometimes to the point of being completely unaffordable to none but the super-rich. Carry out some research into the housing market in your particular area. If you live in a particularly expensive city, it might be an idea to widen the area of your property search to locations that are slightly less desirable, therefore with more affordable housing options. However, it is important that you weigh up the pros and cons of the prospective area: a cheaper home on the outskirts will not save you money in the long run if you have high weekly fuel costs to commute to and from work, for example.
- Apply for a Help to Buy scheme
You might feel discouraged at the prospect of saving up for years to afford a mortgage and deposit on a property; however, assistance is available. A Help to Buy scheme aims to get first-time buyers on the property ladder by contributing a certain amount to your savings. You will receive a 20% equity loan from the government by saving your own 5% of your deposit, upon which you can buy a new build home with a 75% mortgage. This scheme is hugely beneficial for first-time buyers, helping you to get on the property ladder with a stunning new build.
- Buy a property that needs some TLC
A property that has dated décor and household appliances that are due for an upgrade will have a lower asking price than a well-maintained, up-to-date property. Bear in mind, however, that this lower asking price usually takes into consideration the cost of such renovations. If you are particularly skilled at DIY, you can keep the costs of such renovations down. For instance, with a bit of skill, you can easily update a dated living room, creating a cozy space that reflects your personality. For more specialist renovation work, such as that involving plumbing and electrical work, you should always consult a professional to ensure a clean, safe finish. If you need a roof replaced, you can check out https://www.rubberroofingdirect.co.uk/buy-flexiproof.html.
As you can see, although making the initial purchase of a property is undeniably expensive, there are ways that you can buy your first home on a budget. Once on the property ladder, you will have the ability to move houses with greater ease.