Categories
Deal Sourcing UK Property Software

How Can I Get a Cheap Property in the UK in 2021?

Is there still such a thing as a cheap house anymore? Property prices continue to increase, and home lenders seem to be placing more pressure on first-time buyers than ever before. So, do low-cost houses exist, and if so, how do you get one?

Here are several alternative ways to afford a home, ranging from LISAs to property auctions, with one for any form of buyer.

  • The Rent Problem
  • LISAs
  • Property auctions
  • Below the Market Value Properties
Rent Problem

Paying exorbitant rent has left many house hunters struggling to save for a substantial mortgage, delaying the possibility of home ownership until older age. According to existing research, prospective home buyers believe they will not be eligible to purchase a home until they are 33 years old.

Rent increases, notably in London, have forced many people out of the property market. The average rent in the UK is more than 30% of the family income – and in London, it is a staggering 61 percent.

These estimates suggest that there is less money available per month for such household bills such as food, taxes, vehicle maintenance, travel costs, electricity bills. How on earth can people save any money ever again?

To buy a house the traditional way, you’ll need at least a 5% down payment, or 10% if you want a good interest rate. Since the price of a home in the UK is currently £235,298 (and this does not include the cost of locating and buying a house), first-time buyers must save at least £12,000 (and this does not include the cost of finding and purchasing a property).

To address the home affordability crisis, the government implemented programs such as stamp duty holidays and Help to Buy many years back. These schemes were well-received, but the rigid rules that surrounded them also restricted who could profit from them.

More recently, additional initiatives such as Lifetime ISAs and city authorities increasing joint ownership schemes outside local government properties have been added.

LISAs

Lifetime ISAs (LISAs) have replaced Help to Buy ISAs. They are intended to assist you in saving for your first home – or your retirement.

A LISA allows you to save up to £4,000 per year. A 25% incentive is provided by the state. Like an Aid to Buy ISA, all sides of a couple will get their own LISA and benefit from the bonus.

The distinction here is that you will either use the funds like you will for a Help to Buy ISA (to pay a mortgage on your first home) or continue to save into the account before you reach the age of 50. You will only use the funds until you reach the age of 60, implying a minimum of ten years of compounded interest and a 25% bonus.

The LISA was created in order to motivate people to save for retirement. Getting on the property ladder is one way to secure your potential investments, while paying for savings that you won’t be able to tap until you’re 60 is another.

You’ll voluntarily give up the 25% bonus and incur a 6% fee on any money you withdraw that isn’t for your first home or over the age of 60, ensuring you’ll get out less than you put in.

The LISA is a distinct form of ISA from the Help to Buy ISA, which is a cash ISA. This ensures you will contribute to both your LISA and a cash ISA per year.

Online Auctions

Since you don’t have to visit the property, and several online auctions offer you many days to close, online auctions are good for finding below-market purchases. This gives you ample time to finish the deal with your final buyer. Since these auctions are conducted via the internet, you can purchase properties in the United Kingdom without leaving your home.

Online auctions can also be a perfect way to practice with potential purchases. You should, for example, take online tours of properties and analyze repairs; keep your maintenance estimation in mind while making a real deal.

Search Below The Market Value Properties Online

Online real estate softwares, such as DealSourcing, have search filters that allow you to set up for the focal points you’re searching for. This proptech technology has been able to simplify this mechanism and build a platform that functions as your personal property sourcer.

The platform will locate properties from all over the internet and sort them in the market by percentage of BMV at 10%, 15%, or even 40% below market value, thanks to algorithms and the power of automation. Furthermore, you will be able to locate properties with the best Return on Investment (ROI), which calculates the value an investor can gain in relation to their investment.

It lets you save time, money, and resources. The main purpose of this platform is to identify High Yield properties. It’s a no brainer to have DealSourcing.co if you are looking to UK Below Market Value properties.


Brought to you by DealSourcing.co

DealSourcing.co puts the power of automation in your hands. With the click of a mouse, you can search over 200,000+ Below Market Value offers (Buy-To-Let, HMOs, and BRRR) with ROIs of more than 15%. Using our efficient and user-friendly software, you will find High Yield properties.

Leave a Reply

Your email address will not be published. Required fields are marked *