Property is one of the most expensive things you will ever have to pay for, so it is well worth thinking carefully before you buy. For first time buyers, the cost of getting on the ladder is much higher than for those who already have a property because you are starting from scratch, probably don’t have all the furniture and appliances you need yet and will almost certainly want to move again in the next 10 or so years if you want to start a family.
With all this in mind, the property landscape can look pretty perilous from the bottom of the food chain. However, if you are willing to do some research, happy to live simply and determined enough to make it work, you can get on the property ladder and still enjoy your lifestyle.
Start Small and Cheap
Saving up for a down payment on any house is expensive but, the cheaper you can get it, the sooner you will be able to move in. Instead of going for the dream house straight away, pick something smaller that will do for the next couple of years. Remember that you aren’t really looking for a forever home right now, you are looking for the first rung on the ladder.
Starting smaller and cheaper will also help you with your mortgage repayments as they will be proportionately smaller too. And, if you can get a preferential rate from a mortgage broker like Altrua Financial, you can also whittle that mortgage down a little faster.
Though you will almost certainly have to move again, starting with a tiny home is the best way to save on utilities, cut down your costs and get an opportunity to make a small profit. If you can think of small as bijou and enjoy a tiny place for what it is, your attitude could lead you on to great things.
Be Prepared to Buy a Fixer Upper
Just as you shouldn’t be aiming for your forever home right now, you should also be prepared to do some work on your property. It is much cheaper to buy a home that needs some TLC than one that has literally just been refurbished so if you can live with wallpaper from the 80s and are prepared to haul up the old carpet, this will save you a lot of money.
When you are young, it is a bit easier to live slightly uncomfortably because you haven’t yet become accustomed to luxury. Plus there is a bohemian joy to making things just about work on a shoestring budget that seems to bring out creativity (or at least, it seemed to in them!). If you can last on second hand furniture and make do with what you have now, you will be able to reap the rewards later on when you sell for a profit and can move on to your next home.
Go For an Upcoming Area
Location is always going to be at the heart of property and if you are looking to make a tidy profit, you should find out where the local up and coming areas are. Even if they aren’t quite as well connected or are a bit on the rough side right now, in a year or so’s time, these areas will be gentrified and much more expensive places to live – just what you need to turn a profit.
Ask a few local estate agents where they would recommend as well as locals in the area. Most people are really friendly and happy to chat, especially if you compliment them on their choice of home. Upcoming areas can be difficult to spot, but in general, you should look for areas where there is more investment being made in new buildings, renovations and public assets. These are the places that are definitely on the up and should be ripe for investment now.
Buying for the first time is always going to be a bit of a leap of faith but if you think carefully about what you want, what you need and what you can live with, you will almost certainly make a good decision when you come to buy. The property market is a great place for you to make an investment so you should also think with your financial hat on too. If somewhere looks a bit downtrodden now but could be the next big hit in a year or two – asking whether you could live there could be just the right idea.