Buying a home is considered a rite of passage for many young people. Buying a home with limited resources can be a challenge, but it can be done. You should decide your life goals before choosing a property to buy – do you want to live a relaxed life in the country or a busy, exciting life in the city?
You will find properties to suit any lifestyle, but you may need to adjust your expectations depending on what you decide.
Live With Your Parents
Living with family can help you raise the money for a down payment. Accommodation costs can be high and living with family can slash this cost. Discuss moving back in with your parents them and see if they will be open to the idea.
Consider All Locations
Location can massively impact the cost of a home. Decide on a state or city to move to and be open to different properties in the area. You should spend time in the areas to get an idea of what it will be like to live there.
Cut Unnecessary Spending
Keep a diary of your expenditures to identify any areas you could cut costs. For instance, see how often you get takeaway and try to reduce this. You could switch from branded groceries to generic to save money and buy things second-hand to save more.
Look Into All Funding Options
There are options for people with lower savings. For instance, the FHA mortgage allows eligible people to put down a 3% down payment on a property. Ensure that you are making the most of the funding available.
Know Your Life Goals
Before buying a home, know what your goals in life are. Raising a family or being in the thick of city living can mean vastly different things for where you live. Discuss your plans with your partner to ensure you are on the same page.
Be Prepared For DIY
You should be able to fix any minor issues your home faces. You could take a course to sharpen up your skills. You should use a professional tradesperson if there is an issue with your home’s gas, electrical work, or structure.
Save Plenty For A Down Payment
The more you save for a down payment, the better rates you will get on a mortgage. Aim to save 10-20% for your down payment. Consider delaying your purchase if you haven’t saved much to give you more time to save.
Buy With Someone
Buying a property with your partner can improve your chances of getting a mortgage and split the overall cost in two. Don’t rush into any decisions, and ensure that you’re making choices for the right reasons.