Getting on the property ladder is harder than ever before. Young couples are delaying marriage and having kids as a way of saving up for a property.
Others aren’t bothering at all, resigning to a life of paying rent. While affording a down payment still requires some savings, you don’t have to be rich to afford a property.
There are lots of creative ways to pay less for a property. Here are a few methods that could be worth considering for any potential first-time buyers. Take a read of this before you look at homes for sale.
#1 Consider the location
Not being fussy about the location is the easiest way to nab yourself a cheap property. Rural properties can often be less expensive than urban properties.
They can be useful if you’re looking for a home, but not so good if you’re looking for an investment that in the future could allow you to buy a bigger and better property. Buying a property in an upcoming urban area is thought to be the best method of property investment – just be aware that you may have to rough it out in an undesirable area.
It’s always worth looking into crime stats first. Your safety is more important than getting a good deal.
#2 Look for foreclosures
When a property owner falls behind on their mortgage payments, it’s sometimes possible the property may be repossessed.
These types of properties are known as foreclosures. Such properties are generally cheaper as they don’t have the appreciation value that other properties come with.
You can find some sites online that sell these kinds of properties. Many foreclosures will be in good condition whilst others may need some work. Either way, they’re likely to worthwhile.
#3 Consider ‘as is’ properties
‘As is’ properties may not be in good condition and may require you to pay for some extra work to be done before moving in. However, they are generally much cheaper to buy as a result.
When searching these properties, it can often be worth hiring a surveyor to get an idea of the likely repair costs needed to restore the property.
Even with these repair costs added on top, ‘as is’ properties can generally be a bargain – most people don’t want to take them on simply because of the extra work required on top.
#4 Build your own home
Few people realize how cheap a self-build is. You may be able to construct the property for a quarter of its sale value in some cases (cost of labor included).
You will have to buy the land first, which can be the expensive part, but altogether it’s likely to still work out cheaper than buying a regular property in many cases. As with standard real estate, there are self-build mortgages so that you don’t have to pay for the entire cost upfront.
Building a house can be time-consuming, and it’s worth over-budgeting as extra costs are likely to crop up along the way. There may be some restrictions when it comes to the land. Make sure that before buying any land, you’ve thoroughly researched into what you can and can’t build there.