If you can’t afford to buy a home, the first thing to realize is you’re not alone. House prices have risen dramatically over the last few years, and for some people, it’s made a house a seemingly impossible purchase. After all, to buy a home, you could be looking at anything from 150,000. Now, while technically you can buy a home on roughly five percent of that which is about 7500, you need a lot more to get an affordable mortgage deal. The general rule is a big deposit means massive future savings. And even if you do want to buy a house with a basic mortgage 7,500 is still a lot of money. This is particularly true if you’re single. It seems that single individuals are definitely at a disadvantage when buying property. That’s the bad news. The good news is that there are lots of ways to make property purchases easier if you know how.
Find Out Exactly How Much You Need
You might have an idea of the type of house you’re looking to buy and the price you’re considering paying. If that’s the case, you need to think about what you can afford and what you’ll need to save to get a good mortgage. This is always the best starting point when you’re thinking about buying a home. It gives you a goal to strive for. With a home loan affordability calculator, you can find exactly how much you’ll need to get the house you want to buy. But what happens if the cost is too expensive and the mortgage payments are going to be unmanageable?
Don’t Buy To Live
You won’t have to worry about the cost of the house as long as you can use it as a second income. Rather than buying somewhere for you to live, buy it to rent out. That way you can make some money back on the property each month, and it instantly becomes manageable. Now, you probably won’t make enough from rent to make a profit. You can, however, use the rent as a mortgage repayment and possibly pay the difference. Once you have paid off the house, you can continue renting or live there yourself. This can be the perfect way of making sure you have somewhere to move to one day when you retire.
Buy Somewhere Else
As a working professional, you are probably looking at buying a house somewhere near where you work. This is a mistake because homes in areas like this are always going to be expensive. Instead, you should be thinking about buying in the suburbs away from the city where prices are lower. It’s one way to make buying a house far more affordable.
Buy With Someone
Finally, if you are single, you might want to look for someone else to buy the property with you. This doesn’t have to be a romantic partner, and instead, you can look at a mutually beneficial co-ownership. There are schemes like this in place including companies that aim to pair you with another buyer. Doing this you can go from being able to buy a house worth a couple of hundred to one worth up to a million!