Buying a property is no easy feat, especially in 2021. With a housing policy that’s been likened to “generational warfare”, many Millennials fear they’ll never own a home of their own. It’s not only government decisions that are tying us in knots. There’s a myriad of other factors at work too, and all of them are making it harder than ever to buy.
The burden of student debt is only one issue. Add into that tighter lending criterion, rising house prices, and stagnating wages, and you have a perfect storm of factors working against younger generations. While the will to own is there, the way is not.
However, property experts suggest we shouldn’t be disheartened. According to them, it’s still possible to get your foot on the property ladder, although you might not like what you have to do. Here, they’ve shared their top tips for making a successful property purchase even with a limited income.
Commit to Cutting out Luxuries
Before you scroll past, hear us out. Clearly, it’s common sense you need to save, and missing out on the occasional Starbucks cappuccino isn’t going to cut it. We understand that even with the best will in the world, it can still feel impossible to scrape together sufficient funds. What the experts suggest is a more radical approach.
According to them, you have to be draconian. This might mean making yourself miserable for the next three to five years. Thinking of going on vacation? Then don’t. That’s a substantial sum you could add to your home-owning fund. Considering upgrading your car? Stick with your current drive unless it’s legitimately on its last legs. Enjoy socializing? Then you’ll have to say goodbye to restaurants, coffee shops, and nights on the town entirely.
Only by making major changes to your lifestyle will you save enough to make any real and useful difference. Knowing this, you may decide it just isn’t worth it.
Be Realistic with Your Savings Goals
If you’re on a low income, there’s only so much you can save, no matter how hard you try. This means there’s no point in holding out until you have $100,000 in the bank. It’s never going to happen, so be realistic about what you can save and the type of property you’ll be able to purchase.
Consider the sort of location and size that may eventually be in your budget. This might mean settling for a one-bedroom apartment in a less-than-ideal area to start with, but at least you’ll still be getting an initial foot on the property ladder. Remember, the first step is always the hardest, and there’s nothing to say you can’t keep scaling up. You just need to get there first.
Talk to a Mortgage Broker
As someone who’s on a low income, you’re not necessarily a great proposition for lenders. However, you’re unlikely to cover the entire purchase price on your own, so you’ll need to find someone who’ll extend you the funds – preferably without offering unfair terms.
According to the experts, a mortgage broker service like Trussle may be best placed to help with this. These entities exist to talk you through the best deals and offers on the market. They’re happy to advise you and discuss any concerns, and their advice is usually fee-free. Utilizing their service can save you hundreds of pounds per month and increase your chances of being approved too.
Consider Buying with Someone
One of the problems Millennials face is that they tend to settle down later than their parents. They move in, marry, and have children when they’re older than previous generations, and this means many are buying a property alone.
For those on a lower income, this poses an especial problem, but it also suggests an obvious solution: is there someone you can buy with? Whether it’s a friend, family member, or partner, only having to cover half of the purchase price makes owning a home much more achievable.
Isn’t it time you took these tips and used them to get your foot on the property ladder?