Climbing the property ladder for first-time buyers is a prospect for investing novice buyers who plan to own a home in the UK. The key to investing in property is to plan ahead and invest for the future. Here is some guidance for first-time buyers. Start saving regularly and consider investing with a gift deposit.
Downsizing
Young people in the UK are more likely to downsize in the coming year than older people, a survey has found. In fact, a quarter of 18-34-year-olds plan to move to a smaller property this year. And they’re likely to do it for a variety of reasons, including saving money.
Investing with someone else
If you are struggling to save enough for a deposit and purchase fees, then investing with someone else might be the best option for you. Saving on a consistent monthly basis is key. You may have to cut out the friday night takeaway to make some extra money each month. You might also need to turn down social events to help you save.
Saving consistently
The cost of climbing the property ladder has risen dramatically in the last thirty years. This has made the task of first-time buyers increasingly difficult. However, the recent fall in house prices may be a welcome relief. Saving for a deposit is a relatively straightforward task if you know how to do it correctly. Creating a consistent savings routine is an essential first step in mastering your personal finances.
Investing with a gifted deposit
Gifted deposits are a great way for your children or grandchild to climb the property ladder, but it’s important to be aware of the risks involved. These deposits can cause problems with proof of funding and lending. As a result, you should seek independent legal advice. It’s also important to remember that the person who gave you the money has no interest in the property.
Buying a property in need of refurbishment
If you are a first-time buyer, you may want to consider buying a property that needs refurbishment. This can save you money on the purchase price and allow you to renovate it yourself, increasing the capital value of your property. Taking on this project may be intimidating, but it will allow you to move up the property ladder more quickly. You may even need to forego certain luxuries to save the deposit for the purchase.
Selling your home before buying a property ladder
If you’re looking to buy a property in the future, then you may want to consider selling your current home. This can help you to extend your housing budget and increase your buy power. It can also help with the down payment on your next home.