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When it comes to spending money, one of the biggest purchases you are very likely to make is buying your home. With house prices constantly on the rise, they are not really likely to drop by any great amount any time soon. So, you may need to use some creativity to get yourself into the house of your dreams.
There are many stages that you need to look into when it comes to understanding How to Buy a House. The more research you can do into the housing market and the way that it works, the better.
Here are some ways that you could help yourself get on and up the housing ladder as quickly as possible.
Buy An Auction Property
When it comes to buying a property, often the cheapest way that you can buy one is at an auction. When a property is not in the best of condition it may fair badly in its survey. This survey is something that mortgage lenders will expect to see and homes that have too many problems will represent a significant risk to mortgage lenders and you would not be able to borrow against this property.
So, that leaves a property that needs a lot of work doing to it that you cannot borrow money against. Naturally, this type of property can only be sold to a cash buyer and will be much cheaper than if it were in a good state.
If you have money saved up, this could still be one of the cheapest ways of getting onto the property ladder.
Once you own the home, you can carry out the work that needs doing as you go. Make sure and deal with the major problem areas as a priority as there may be a safety concern, especially if you plan on moving in before renovation work is complete.
If you buy a leasehold property, you own the home, but not the land that it is built on. That means you will have a landlord who you will likely pay a basic rent to for the land over a fixed term, which is usually a lot of years, potentially up to 100 years. You won’t have to worry about every being evicted, and you may be able to buy the freehold.
Leasehold properties can put people off buying them. For that reason, they may be cheaper than you would expect for a property of that size and in that area.
Boost Your Deposit
The more you are able to put down for a deposit on a mortgage, the more you will be able to borrow. This will mean that you would be able to buy a bigger or better property. This may mean better commuting links or being situated in a more favourable location.
Alternatively, a bigger deposit may mean that you would borrow less and pay a smaller amount on your mortgage payments each month, making life much easier.
This is a collaborative post.