Getting on the housing ladder can be an uphill task especially if you do not have enough money for a deposit. You however need not allow this to keep you from becoming a homeowner. Here are some financial options to get you closer to your dream home:

A shared ownership scheme

234This is where you buy part of the property and rent the rest from a housing developer or the local authorities. You can buy between 25 and 75% of the property. This option allows for lesser deposit and mortgage. If you need to borrow money from a financial institution, you also have a less amount to borrow. However, this option has a downside to it. You never get to own the entire property. You must also be eligible.

On the other hand, you still have the right to buy the rest of the property later. You can look out for this option on specific properties that could be offered from the local authorities or even as part of new developments. Priority is given to people who provide services like nurses, policemen and teachers, and low-income families. Ensure that you get to know what your chances are before venturing out.

Deals on New Build Homes

Construction companies have programs to help first time homebuyers. They lend you, the homeowner, the amount of money you need for your deposit. This money is interest free. This allows you to borrow a lesser amount from financial institutions.

Buying at auction

This could be a great option of getting onto the housing ladder. You will need a lesser deposit and mortgage if you choose to buy at auction. If you are handy, you could do the renovations yourself. However, you must consider how much money you may need for renovation repairs. It is also riskier to go for this option, as you may not be able to determine whether the property is worth that amount of money at the point of purchase.

Pooling Resources

You can opt to buy property with family or friends. This cushions you when it comes to dealing with lenders and you also pay a lesser deposit. You must however consider how to hold the mortgage deeds. If you are equal partners, you are all equally responsible to pay the full amount should any of you get into financial difficulties or die.

You need not think that getting on the housing ladder is out of your reach. Before you quit, look at the options available.


Categories: Uncategorized

Leave a Reply