With property prices continuing to soar and average yearly earnings stagnating, it should be no surprise that millennials are finding it much harder to buy their own property than previous generations.
The statistics are clear: first-time property buyers are getting older, while the percentage of those in their twenties who own property is shrinking. Only one-in-five 25-year olds own a property. Just ten years ago, it was two-in-five.
On The Property Ladder Before 30?
So, is it impossible to set your foot on the property ladder before you’re thirty? Of course you can. 🙂
You don’t even have to be rich. It takes patience, it takes the willpower to start saving right now, and it takes a close eye on the market, but here we’re going to look at how you can get a property before your 30th birthday.
Figure Out The ‘What’ and ‘Why’
First of all, you have to consider why, exactly, you want to buy property.
While rising costs are one of the reasons that fewer people in their twenties are buying properties, there’s also the consideration that because of higher job mobility, people are less willing to “put down roots” and commit to staying in one place for over a decade.
However, there are plenty of good reasons to buy a property, particularly as an investment. You may want to purchase a rental property so that you have real, tangible assets contributing to your need worth as providing an income.
Flip A Property
You can buy a share in a property with friends, family, or investment groups. You can flip a property, making improvements to increase its value before selling it at a profit.
Principal Place of Residence
Of course, you may simply want a place to live. Figuring out your reasons to get on the property ladder can help you spot the right opportunities and help you draft up an appropriate budget.
Draft up a budget plan
Having a budget and sticking to it is essential if you want to buy property. So long as you have any income, you can find the costs that you can cut and put aside at least a little bit of every single paycheque.
It regularly takes first-time homeowners four years to save for a deposit, a lot more than the year or two it would take a couple of decades so don’t worry if you feel like progress is slow.
The crucial point here is that you don’t procrastinate or neglect your savings. You can automate transfers from your current account to your ISA, for instance, or you can simply follow the rules of “pay yourself first.”
Therefore every time you get paid, you put aside the savings towards your deposit or other savings goals first. This means before you pay your rent, before you pay your bills, or spend a single penny otherwise. It’s a good way to ensure that you’re following the budget no matter what.
Get The Best Mortgage Suited To Your Needs
The overwhelming majority of first-time homeowners take out a loan to help them purchase a property.
The mortgage market can be hard to understand, so spend plenty of time doing your research while you’re saving.
You want to know what you’re looking for by the time you have a deposit together.
Besides scanning the market for deals, there’s plenty you can do to get a loan that’s in your favour.
Improve your credit score
Work on improving your credit score by using credit cards or smaller loans reliably or by inspecting your credit report and contesting any erroneous entries.
Save up a larger deposit on the loan so that the long-term payment plan becomes a lot more manageable.
Just ensure you have your mortgage pre-approved before you look at properties so you have an idea of how much house you can afford.
Know The Property Market
Property costs are rising, but there are still opportunities to be capitalised on and area specific changes to be followed closely.
If you know the area you want to buy property in, ensure that you’re subscribed to papers and online publications covering property and development in the market.
Property Discussion Forums
Join the discussion and benefit from the knowledge of others who have been in your shoes. Forums like PropertyTalk.
Join Local Property Investor Associations
local property investor associations can help you form a network with likeminded people and benefit from their experience.
Meet Local Real Estate Agents
Don’t forget to pair up with real estate agents that know the specific area you want to buy a property in, too.
Take Advantage Of Financial Help For First Home Buyers
More and more first-time property buyers are getting their foot on the property ladder with a little help from the state. Depending on your area and your circumstances, you may be able to benefit from a whole host of financial assistance options.
There are specific ISAs, for instance, that allow you to get an added bonus depending on how much of the deposit you save that can knock down the overall cost of the property. Do a little research on home-buying schemes locally and nationwide to see what’s applicable to you.
Expect The Unexpected Costs
Buying property is expensive and it’s not just the cost of the home itself that makes up all those costs. You have to consider the legal conveyancing fees, the fees of the realtor, travel fees, the cost of moving, and much, much more.
Depending on the kind of property investment you want to make, ensure you have a full breakdown of the costs. There’s plenty of itemised budgets on the net for specific costs.
At the same time, make sure you have some wiggle room in your budget for unexpected costs. Buying a property doesn’t always go smoothly and you find yourself having to reach into your pocket a little more often than expected, so prepare for that.
Hopefully, the points above show that it’s most certainly do-able, and more cost-effective, to buy a property while you’re still young. This is only a jumping off point, and you should continue to read voraciously, stay connected with like minded people and keep a close eye on the market.
You can do it, you just have to be prepared for the effort, savings, and sacrifice it might take.
Didn’t Think of That: 5 Important First Time Home Buyer Questions You Can’t Forget to Ask
Approximately 33 percent of home-buyers in the U.S. were first-time buyers in 2018.
Buying a home for the first time can be a scary prospect because there are so many questions to ask about this process.
Read on the find out the essential first time home buyer questions that you need to ask before you buy.
First Time Home Buyer Questions You Need to Ask
Buying a home will probably be one of the most financially costly decisions you make, but it’s also a great investment.
If you are a first-time buyer and you’re nervous about purchasing a home, make sure you do your research and ask the relevant questions.
1. Are You Ready to Buy?
Up first on home buyer questions is: are you ready to buy?
Purchasing a house can be expensive – you don’t just have to think about the price of the house and the mortgage rates. You also need to consider the cost of maintenance, closing fees, furniture, and so on.
Work out your financial situation. Do you have enough money coming in? Have you got enough money for a down payment?
2. What Kind of Mortgage Can You Afford?
Next on the list of questions for first-time home buyers is: what kind of mortgage can you afford?
Working out how much money you have for a down payment is essential for understanding how much you can afford.
Lenders expect between five percent and 20 percent of the loan. It depends on the loan type and different lenders, so do some research to find a loan and down payment that suits you.
3. Do You Have an Emergency Fund?
Still focusing on the financial side of buying a house, you need to ask yourself if you have an emergency fund and/or savings.
If you have been renting up until now, your landlord would pay for maintenance and repairs. When you own your own home, you are responsible for any repairs, so make sure you have some savings.
There are a number of questions to ask a realtor when buying your first home, which might help you from having any nasty fees. For example, you may want to know what’s included in the price.
There are also many checks you can do, such as getting a homebuyer survey done on the property and having a plumbing inspection before you buy a home.
4. Questions to Ask Your Realtor When Buying
When you’re looking around a house, make sure you ask your realtor any questions about the property.
Essential questions to ask include: why the previous owners are leaving, how long the house has been on the market, what is included in the price, will the owners accept a lower offer, etc.
5. What Type of Insurance Do You Need?
Finally, make sure you research the different types of insurance you need. Home insurance covers your possessions if they are stolen or damaged.
You can also get insurance to cover any external or internal damage that might happen to your house, such as a fallen tree or floods. Make sure you do some research to find the best deals and coverage.
For more information on buying a home for the first time, click here.
Research, Research, Research
Follow our guide on the first time home buyer questions to ask. And remember, the more research you do, the more prepared you’ll be for buying your first house.
Check out the latest housing news articles for more tips and information!
Who Is The Real Estate Agent Working For?
Dealing with a listing agent, either as a vendor selling a property, or as a prospective buyer, keen to purchase, can be challenging and stressful.
So how do you find out who the real estate agent is working for, and how can you protect your interests in the property?
In this article, we will look at your options as a vendor selling your home and also what you can do as a prospective purchaser.
What you may not know is not all real estate agents are honest some go rogue, and work outside the rules at their client’s expense.
Over the years, agents have been reported to authorities, for all sorts of dodgy activity. The most common include: encouraging vendors to sell their property for less than market value and persuading motivated buyers to pay more for a property than it’s worth.
When you’re the vendor who has engaged the Agent, most likely you believe you’ve chosen well and your agent is working for you not a prospective purchaser so it would be a shock to learn otherwise.
In most situations this is the way it works, however not always and too often the agent’s own personal agenda gets in the way of doing the right thing and playing the rules.
Property market conditions can and do change the motivations of all parties involved in property sales.
Therefore as the Vendor you need to make sure you have gone the extra mile in your agent selection process. Where the market is in the property cycle does impact on the well-being of the agents and their actions accordingly.
In a buoyant property market, sales prices are rising, and there are lots of listings, therefore even the less successful agents can make a living during this phase. This usually means they’re not desperate for the sales commission, so arguably you can probably escape a bad deal being done during the boom.
In a slump there are generally less property listings as property owners hold until the market turns and they can get a better price. Agents that are less successful can go weeks if not months with a sale and it’s during the tough times that desperation can make some people take extraordinary risks. Vendors need to know markets can change quickly, so it’s your job to choose your agent and their agency wisely.
Do your research on the agent and their agency every time you sell a property. Ask better questions when you’re interviewing them. Seek to learn what they are good at, how they plan to market and sell your property. What you’re looking for is non standard sales speak. They should also have come prepared so they can show you their success with selling properties similar to yours.
Most important is sounding out their knowledge of the market’s phase in the property cycle and their specific local knowledge of listings and sales. Here are a few questions:
- How well do they know their area and what’s happening in it?
- When did they last sell a property similar to yours?
- How long did it take?
- What could be done to shorten the time your property is on the market?
Strategy and Plan
Finally as a vendor, make sure the agent’s goals for your house sale align with your own. An agreement needs to be reached between you and the agent on the condition of your property, and the expected sales price. Agents may suggest some cosmetic work, to modernise or refresh the property. Painting walls, home staging and maybe landscaping to create a welcoming entrance.
Condition of the property
At the same time the agent should be able to give you a guesstimate on how much you need to spend and how much more profit is likely to achieve due to the investment. Of course you’re not going to hold them to it and you’d get quotes from the service providers doing the work, but this extra input does separate the good from the average or extraordinary from the ordinary.
Understand how your home will be marketed, both offline and online. Review the marketing copy and photos, and make sure it’s what you expect from it. Remember the plan is to get your home sold, in good time for the right price.
Prospective Purchaser Relationship
From a purchaser’s prospective it’s best to assume the listing Agent is working for the vendor not you. Their commission comes from the property sale and it is the vendor that has chosen the agent over his or her peers. This doesn’t mean you’ll have no influence, remember the property cycle does change how an Agent may interact with purchasers. Quieter times call for a different approach therefore know where the market is in the property cycle.
What happening in the area you are looking to buy a property? Not all cities or regions are in the same phase of the property cycle.
Property sales prices can be going upwards in one city (boom phase) and dropping in another area (slump phase). So it’s important to know what’s happening where you’re looking to buy as well as have a broader view of the national and global environment. Consider everything that may change the stability of the house price so you can purchase well.
Property Sales Analysis
‘Knowledge is power’ and you can use it before you deal with listing agents.
Do your research before you find the home you want to buy.
The more you understand the local area and recent sales activity as well as what’s on the market for sale; the easier it is, to make sure you pay the right price irrespective of whom you deal with as part of the sales process.
Buying a home is a big ticket item so it’s not the time to be seen as a novice. Yes, it may be your first home purchase but you can be confident when you know what’s happening.
Finally, always seek professional legal advice and it’s always a good idea to communicate with your accountant too before you sign an agreement to buy a property.
Being a vendor or a buyer is no guarantee you’ll be on the right side of a property deal.
The more you know about the property market, and your own circumstances, the more confidence you will have in making the right decision. The aim is to avoid asking the question: Did my agent just rip me off?
Top Reasons to Move to Texas
Texas is a great state to live in for many reasons. If you are in the process of deciding which state you’d like to live in and are weighing all your options let this article help. One of the main things you will learn is the cost of living in Texas is still relatively inexpensive compared to other parts of the USA.
Ross Quade owner of Austin based New Listing Alert explains, “Texas has some wonderful opportunities for people looking to relocate. A good real estate professional can help match the best neighborhoods with your budget.”
The economy in Texas is sizzling. Texas is still producing lots of jobs, and the unemployment rate is currently at 3.7% which is near the lowest ever. Construction and the financial sectors are reliable indicators of the overall job marketed in Texas. The Midland area of Texas has one of the lower unemployment rates in all of Texas so if you are looking to relocate that is one area you should consider.
Is there better food on the planet than in Texas? Whether it is Tex-Mex or BBQ, the great state of Texas delivers. Places like Franklin Barbecue in Austin and Lockhart Chisholm Trail BBQ in Lockhart are Texas traditions. People wait in long lines just for a chance to eat and these places.
Throughout the state, there are plenty of good spots to eat at. In Texas, you don’t need a list because every city and town has one to two go-to locations. Some of these are what you’d call a hole in a wall.
State Income Tax
There are seven states within the United States that have no personal income tax. This is a huge advantage especially for those that make a considerable amount of money. Compare that to states like California where the average state income tax is 6% with the top end of 12%. As you can see moving to Texas from California would nearly pay for your mortgage alone.
Over the past seven years, the price of land in Texas has been going up. The good news is Texas has plenty of land and on the overall scale of things, the price for the land is still relatively low. On average the total cost of the land for a house is around 20%. This varies from city to city but as you can see the land is still very affordable.
Lots of Activities
No matter where you live in Texas there are so many activities you can do and most all within a day trip. Some of the more popular destinations are the Riverwalk in San Antonio, the Space Center in Houston, the Texas State Capital in Austin, and the world-famous Forth Worth Zoo.
If sports are more your thing, there are major sports franchises located near all the large cities. Football is by far the number one watched sport in Texas. Many support their hometown high schools whether they have kids playing or not. The NFL has two major teams with The Cowboys and the Texans.
If you are more of a basketball fan, you have three NBA teams in the Houston Rockets, San Antonio Spurs, and the Dallas Mavericks.
In addition to sports teams, you can find plenty of hiking, camping, fishing, and other outdoor activities in Texas.
How To Buy A Property In Slovenia
Is visiting Slovenia on your bucket list?
This Balkan country is known for its beautiful mountains, with ski resorts, lakes, and ancient architecture. It’s no longer the best kept secret of Europe and many visitors go a step further, and buy a home for their own use exclusively or to use for their holidays and when not in use, rent out on platforms like AirBnB.
While many countries are tightening the rules around home ownership by offshore residents, in Slovenia, it’s not such an ordeal. They’re still welcoming the offshore investment and hence it’s a popular country for homeowners and also tourist now there’s a lot more accommodation available.
Buying A Property In Slovenia Made Easier
In 2004, Slovenia joined the EU, and it meant EU citizens had equal rights to home ownership as its countrymen. In addition to its members there are three other countries that get the privilege.
Iceland, Liechtenstein, and Norway are not in the EU but they’re part of the European Economic Agreement or EFTA and this membership allows its citizens the same equal opportunities as their EU neighbours, including freedom of travel, improved residence and employment terms.
With more movement of people, Solvena’s property has been in hot demand, and not just from EU residents but also from citizens of other countries, many as far away as Australia and New Zealand.
Displaced citizens and their descendants, mainly due to the world wars have been keenly researching their ancestral lines to find a way to secure the many benefits of a EU passport. EU member, Lativa was very successful with hundreds of exiles and their descendants secured dual citizenship, which has in turn opened up the treasure trove of the EU, including the purchase of real estate.
Foreigners can also get their pocket of land in Slovenia when they can prove there’s a reciprocal beneficial interest e.g. prove a Slovenian citizen can buy property in country X, then the citizens of country X can also buy property in Slovenia as well.
And if that doesn’t work the next way in is to have a business in Slovenia or be married to a Slovenian national.
As the saying goes: Where there’s a will there’s a way. 🙂 It pays to understand the process and make sure you’ve got all the paperwork required. Property transactions and the legalities vary in all countries. Get legal advice and contact your team of locally based advisors so you know where you stand before signing a real estate sale and purchase agreement.
The Attraction of Slovenia
Slovenia is considered a safe country. In fact it’s one of the safest in Europe. It has a strong growing economy and stable modern democracy. These are the conditions that appeal to entrepreneurs keen to grow startups. With more business, there will be more demand for workers and no shortage of interest. Accommodation is key to house a growing population, so investment in property and business is a must. Solvenia is definitely ‘open for business’.
The natural landscape and architecture is similar to its neighbour, Austria. The country also borders, Hungry, Croatia and Italy.
Move Where? 4 Key Factors to Help You Figure Out How to Decide Where to Live
Moving regularly ranks as one of the most stressful life events a person can experience.
No matter how excited you might be to start over in a new place, chances are you’re also experiencing a lot of anxiety surrounding your move. For example, you might be wondering how you’re supposed to choose the right place to live.
Finding the right location is essential if you’re going to be happy in your new home. Not sure if you’re making the right decision?
Here are some factors you should consider when you’re trying to figure out how to decide where to live.
How to Decide Where to Live
Whether you want to move to a new city or across the country, there are lots of things to take into account when choosing the location of your new home.
Here are some of the most important things to consider:
1. Tax Burden
There’s a lot of variety in tax rates (and not just property tax rates) depending on which stay you choose to call home.
For example, some states, like Alaska and Oregon, do not charge sales tax. Other states, including Texas, Wyoming, and Washington, do not collect individual income taxes.
If you want to reduce the amount of money you pay each year in taxes, you might want to consider moving to one of these states.
2. Job Opportunities
Of course, you also need to make sure you’ll have opportunities to work in your new city or state.
Before you make a decision, spend some time researching the job markets in the area you’re considering. Take into account differences in salary in different locations, too.
3. Crime Rates
Nobody wants to live in an unsafe area.
Research the crime rates in the state, city, and neighborhood you’re considering before deciding whether or not it’s a good fit for you.
There are lots of online resources that let you look up the number of crimes that have occurred in a particular area, as well as the type of crimes that took place.
4. Cost of Living
Last, but certainly not least, you’ll need to take the cost of living in a particular area into account.
Will your current salary allow you to live comfortably? What kind of house or apartment will you be able to afford? How much do things like gas, groceries, and electricity cost in this new area?
Consider all these factors before you decide whether or not you can afford to live in a specific city.
Find Your Dream Location Today
As you can see, there’s not exactly a simple answer when you’re trying to figure out how to decide where to live. But, if you keep these essential factors in mind, you’ll likely find the process to be a lot easier.
Do you need more help planning your big move? Are you unsure of what to look for in a home or how to get the best price on a house?
Whatever information you need, we’ve got it covered in the buy section of our blog. Whether you want to buy a condo or a multi-family home, check out this section for all kinds of helpful advice.
My First Home: 7 Things You Need to Know About Buying a House for the First Time
It’s part of the American dream: the perfect house.
But if you spend every night thinking, “I can’t wait to buy my first home!” don’t go out and purchase quite yet.
There are a few things you need to know before you jump off the deep end and invest in the house you’ve always dreamed of. Here are 7 things to keep in mind if you’re a first-time home buyer.
1. Ask If You’re Ready to Buy
Before you call a single real estate agent, you need to ask yourself one simple question: are you ready to buy your first house?
To be clear, just because you can buy a house doesn’t mean you should buy a house.
First things first: take a long, hard, honest look at your finances.
For example, do you have the money for a down payment? Or rather, do you have the money to realistically afford a down payment in your area?
Examine your monthly expenses and determine whether it’s cheaper for you to continue as you are or to make mortgage payments.
Also, take a look at your neighborhood. Are you ready to move to a new neighborhood, either because your current one is going downhill or because the cost of living is too high?
Finally, take a look at why you want to buy. Are you truly committed to buying a house, or do you just want to live somewhere new?
2. Start Saving Early
If you do think you’re ready to buy a house, then the best thing you can do is start saving early.
Some homebuyer programs allow for a down payment as little as 3%, but you should aim to make a down payment around the common amount of 20%.
Here’s the thing: while a lower down payment might seem cheaper initially, you may deal with higher insurance rates, and you’ll have to pay a higher mortgage amount.
If you need ideas, tinker with this down payment calculator to figure out a goal down payment.
You should also look into other financing options in the meantime. For example, this Great Start Grant QLD is a great option for first-time homebuyers in Queensland.
3. Get Approved for a Mortgage First
The right mortgage can seriously reduce your stress when buying a house. Alternately, the wrong one can make your home buying process a living nightmare.
With that in mind, get approved for a mortgage before you start shopping. This will give you a clear idea of the maximum sum you can afford when shopping for a house.
That said, use the mortgage as the upper limit of your budget. Remember, a smaller mortgage means you’ll own your home faster, so you want to keep your mortgage lower if you can manage it.
4. Decide on Location versus Space
Once you’re approved for a mortgage, it’s time to start looking for a house.
But before you get excited, consider what your priorities are.
Let’s say you have a choice between a house in an area you love or a house that’s larger and cheaper but further away from your favorite haunts. How do you decide?
Think about whether you care more about proximity or the space itself. If you figure this out in advance, you can make informed decisions about where you make an offer and what homes you’re genuinely interested in.
5. Consider Your Long-Term Plans
You should also consider your long-term plans before making an offer on a home.
For most people, buying a house is the single largest investment they will ever make in their lives. You want to make sure you make the right one.
Are you planning on staying in your current job? How secure is your current job? How long do you plan to live in this area? Do you plan on getting married? What about children or pets?
If you’re not sure this is the house for you in five to seven years, then keep looking.
6. Buy the House You Know You Can Afford
Along similar lines, invest in a home you know you can afford.
Remember, this is most likely the largest purchase you’ll ever make. So buy a house you know you can afford, not the house your mortgage company thinks you can afford.
Your approved mortgage amount is the uppermost limit of what you can afford to buy. Ideally, you should go for a home well below that actual sum.
That way, if your job changes, or you lose your job, or any of life’s many unexpected roadblocks occur, you can still afford to make your monthly mortgage payments without stressing over every penny.
7. Use a Trusted Real Estate Agent
The thought of working with a real estate agent might drive you nuts. The thing is, your home search will be much more stressful without one.
Think about all of the searching that goes into finding a single home. It takes hours of digging to find exactly the right fit for you, on top of finding the time to see the house, check for any issues, and figure out whether the asking price is worth it.
Chances are, you have a full-time job and a life to worry about. A real estate agent looks for houses as their profession. They know what they’re doing, and they know how to separate a great house from a money pit.
Once you’ve found one, here are a few tips to make the most of them.
Buying My First Home, Made Easy
If your dreams have included the words “buying my first home” for years, we’re here to help make that dream a reality.
Check out our blog for more helpful posts like this one to help you find and maintain the house of your dreams, like these five things you need to check during your property inspection.
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