How To Get A Property Before You’re 30
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 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 reason fewer people in their twenties buy 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, plenty of good reasons exist to buy a property, particularly as an investment. You may want to purchase a rental property to 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 want a place to live. Figuring out your reasons for getting on the property ladder can help you spot the right opportunities and help you draft up an appropriate budget.
Draft up a budget plan
A budget and sticking to it are essential to buy property. So long as you have any income, you can find the costs to 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, much 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 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 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. This means before you pay your rent, pay your bills, or spend a single penny otherwise. It’s an excellent 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 researching while saving.
You want to know what you’re looking for when 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 favor.
Improve your credit score
Work on improving your credit score 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 much 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 in which you want to buy property, 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 in your shoes. Forums like PropertyTalk.
Join Local Property Investor Associations
local property investor associations can help you form a network with like-minded people and benefit from their experience.
Meet Local Real Estate Agents
Don’t forget to pair up with real estate agents who know the specific area you want to buy a property in.
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 bit of 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 allows you to get a 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 applies to you.
Expect The Unexpected Costs
Buying property is expensive, and it’s not just the cost of the home that makes up all those costs. You have to consider the legal conveyancing fees, the realtor’s fees, 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 are plenty of itemised budgets on the net for specific expenses.
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 must reach into your pocket a little more often than expected, so prepare for that.
Hopefully, the points above show that it’s most undoubtedly 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.