Useful Tips To Get A Foot On The Property Ladder
There are many people who struggle at buying houses nowadays as a lot of people are rejected when putting an offer in to buy a house. A lot of these problems appear when negative factors are met. These include high house prices, rising interest rates and the general lack of affordability. Those factors have seriously hindered many of those looking to get onto the property ladder.
Even though these factors constantly arise and cause problems when looking to buy a house, they can be tackled or dodged by following a few small simple steps. These steps are:
- Start Small
As property in North Wales and the rest of the UK are high it is very advisable to look for a small and affordable property initially so the price is lower and then when you are a financially better off you can move to a larger property. Due to house prices constantly rising it may work out much more efficient to buy a smaller house and then a larger house, even though this may sound like it would cost more in the long run, if time is a problem for you then it is definitely more advisable. It will also be easier to hop onto the property ladder this way as well.
- Look around for Deals
When it comes to purchasing a property there are a number of additional costs involved. These small costs can really bump up the cost of purchasing a home. These small costs can include up to a 20% deposit and legal fees which can add a small sum, overall increasing the price. However, there are some developers that will offer a move in fee of under £100 and will pay the 5% deposit and the legal fees on the purchase. This can overall save a lot of money for first time buyers.
- Shared Ownership
Many people find an easy way onto the property ladder by taking out the largest mortgage they can to cover most of the property purchase. The other part of the housing price is paid off by renting it from the housing association. This does mean you will be paying more money over time, but it is a very efficient way onto the proper ladder.
- Waiting it out
Due to the rise of interest rates and house prices, house buyers have found it very hard to purchase a home within recent years. However, with predictions that both interest rates and house prices are going to drop soon, it could be worth your time and money to simply wait it out until you can jump onto the property ladder a lot easier.
- Shared mortgages
This is a new concept within the mortgage scene for first time buyers, which enables buyers to club together with their friends or family in order to purchase a property. This can naturally increase affordability and the chances of getting a mortgage, as all the incomes will be taken into account rather than focusing on one member of the group, giving the credit rating a better chance of being higher!
If you need help with getting on the property ladder then contact Llandudno Estate Agents. This highly reputable property company can guide and assist you throughout the whole process and answer any questions that you may have.