Getting one foot on the housing ladder is a tough nut to crack, but that’s no excuse for failing to save money. Sure, it’s an exciting time, but try not to get sidetracked, so you miss out on a better deal. Today, we’re going to look at several ways you can save money on your first home – and have more to put towards your future.
Buy an old house
One of the best ways to start cutting costs on your first home is to buy something that needs work doing to it. Now, we’re not saying you should plump for a dilapidated old relic, but there is a lot of value in going down the renovation route. Get it thoroughly checked by a surveyor, and try and get the seller’s price down as low as possible. Then it’s a case of working out how much the work will cost you to fix, give or take 10-15% to allow for timing and mistakes. If your total comes to less than your discount, then that’s money saved, and in the bank.
Build your own home
Building your home can be the cheapest way to funding your first piece of property. You’ll need to find land, do some research on planning permission, and then put a bid in. If all goes to plan, then it’s a case of funding the build. You can take the reins yourself and manage it, or outsource the work to a reputable builder. You can save around 30-40% on the price of a similar house in the area by building your own home. However, that’s assuming that there are no hold ups, and nothing goes wrong.
Negotiate a better home loan
Getting mortgage approval is a wonderful thing, of that there is no doubt. But have you really tried to look for the best deal on the market? Most people limit their searches to the banks or the mainstream lenders, but there are plenty of alternatives. Try a comparison site to find the lowest rate loans on the market, and put a bit of an effort into your investigations! It won’t cost you anything but time, and a better mortgage deal could save you thousands of pounds over the life of the loan.
Find an up and coming area
There are virtually no good deals areas that are already established, and that house prices are already high. Your best bet, then, is to find a property in an area earmarked for development by the local council. To put it crudely, as soon as a rundown area has coffee shops and health food shops popping up, it’s a surefire bet that gentrification is also on the way. So, you can benefit from a lower house price that, with any luck, will skyrocket over the next five years or so. Meaning the dream move to the most exclusive part of town may not be too far away after all.
Got any more tips on how to save costs on your first property purchase? We’d love to hear them, so hit us up in the comments section below.