Tip #1 – Don’t be afraid to ask for help
The fact is, a large percentage of first time buyers are given financial support in their investment by their parents. If you do end up going down this route, familiarise yourself with the rules and regulations around a mortgage.
Tip #2 – Pick up a rough diamond
If you attend auctions and keep an eye out for repossessed housing and places that need severe renovation, you’re likely to find yourself a good deal. Just remember, there are some key financial regulations, such as the need to lay down a deposit of 1/10th, with the rest needing to be produced within a month. Make sure that you have enough cash to cover this and look into getting a mortgage.
Tip #3 – Make a co-purchase
If you know other people who are also trying to get onto the property ladder, sharing the costs of buying into a place can be a great way to make financing a purchase less painful.
Tip #4 – Save your money
This can take a while depending on the relationship between your earnings, your outgoings and the type of property you want to buy into. This was the most prevalent trend for first time buyers in previous eras. You need to be able to produce a 25% deposit if you want the lenders to take you seriously.
Tip #5 – Consider getting a property that was formerly owned by the council
There are plenty of great properties available, and any household bought from the council within the last 30 years is open to offers from first time buyers.
Tip #6 – Use the existing schemes designed to help first time buyers
There may be a discount available on purchasing property if you act quickly. ‘Right to Buy’ provides people looking to buy property who are currently renting to receive a reduced price/rate on housing.
Tip #7 – Consider sharing ownership
There’s a chance that you will be able to find a property that you can buy into (as opposed to buying outright) on a percentage rate. Typically, 25%, 50% and 75% are the shares available when considering shared ownership. ‘Home Buy’ is a service designed to help people who are looking for a first time purchase in moving towards the goal of owning their own property.
Tip #8 – Getting a new home
You might find that there are some surprisingly good offers going with new homes. Obviously, this is counterbalanced by the need to pay a premium which covers any problems that may occur.
Tip #9 – Why not rent a property with an agreement to buy it within 2 years?
You can sign a contract to say that after your period of 2 years renting is up, you are committed to buying the property. This is a good way to go if you are planning on financing it gradually, but you have already decided which property you like.
This guest post has been kindly provided by Gavin Brazg, editor of www.TheAdvisory.co.uk – The home of impartial expert advice for UK property sellers. The site includes a comprehensive guide on how to budget accurately for your house move.
