If you are eager to get on the housing ladder but you are stuck in a never-ending cycle of renting, it’s time to become more proactive. Finding a deposit to put down on your first pad doesn’t come easy and requires sacrifices. Even if you are in debt or you are struggling financially, this doesn’t mean that you are never going to get a foothold on the housing ladder. You need to set your sights realistically and be prepared to put in the hard graft. Give yourself twelve months to go from seasoned renter to homeowner. Follow this guide to discover how you can get on the housing ladder in three simple steps.
If you are burdened with debt, it’s time to get your head out of the sand to get rid of it. Rather than paying the minimum balance on your credit cards every month and not even touching the capital that you owe, investigate those cards that offer zero per cent interest on balance transfers. This means when paying your debt every month, you are paying back the capital that you owe. This way, you will pay off your debts quicker. It’s always a good idea to stay in the black for at least three months prior to applying for a mortgage otherwise you will appear a poor borrower. No bank is going to want to lend to an individual who just got themselves into unmanageable debt for a set of swanky wheels. Be sensible and try to shift your debt. When your debt is manageable, you can begin to hunt for houses.
Set Your Sights Realistically
While you might want the five bedroom mansion, this might not be a realistic first step n the property ladder. Your first pad won’t be your dream pad, but it should be a sound investment to help you move on in five years time. Think with your head rather than your heart for your first purchase. Yes, you might want the showhome minimalist finish, but this might be out of your price range. Instead, opt for the worst house on the best street. You can’t change the location of a house but you can change the house itself. A cheaper mortgage also means that you will have the funds to carry out the renovations. Buy well, update and modernize on a budget, and you could have a profitable asset on your hands.
Many people choose to release equity from their homes to do them up. If you are of a certain age you might be able to check out a reverse mortgage calculator to help you borrow against your home to carry out some improvements.
Go To Auction
If you really want to bag yourself a bargain, consider the auction. Here, you can bid on all sorts of houses that have never found their way to the open market. There are some real treasures to be found here. The chances are that they will need modernizing and updating, but they also give you the chance to put your own mark on a dwelling.
Buying your first home may seem out of reach but it isn’t. Follow this guide and you could find yourself on the housing ladder in 2021.