Is there such a thing as an affordable property these days? Home lenders appear to be putting more pressure on first-time buyers than ever before as property prices continue to rise. So, are low-cost residences available, and if so, how do you go about finding one?
There are numerous more options for buying a home, ranging from LISAs to property auctions, offering lots of variety.
- The Rent Problem
- Property auctions
- Below the Market Value Properties
Paying high rent has made it difficult for many house seekers to save enough money for a significant mortgage, postponing home ownership until later in life. Potential house buyers assume they will not be able to buy a home until they are 33 years old, according to existing studies.
Many individuals have been driven out of the housing market due to rent hikes, particularly in London. The average rent in the UK is more than 30% of a family’s income, with a startling 61 percent in London.
According to these calculations, there is less money available each month for things like food, taxes, car maintenance, travel costs, and power bills. How will individuals ever be able to save money again?
You’ll need at least a 5% down payment to purchase a house the traditional way, and a 10% down payment if you want a reasonable interest rate. Because the average cost of a home in the UK is £235,298 (not including the cost of seeking and purchasing a home), first-time buyers must set aside at least £12,000. (and this does not include the cost of finding and purchasing a property).
Many years ago, the government introduced programs like stamp duty holidays and Help to Buy to solve the housing affordability problem. Although these schemes were well-received, the tight regulations that accompanied them limited who might profit from them.
Additional efforts have since been implemented, such as Lifetime ISAs and municipal governments expanding joint ownership plans outside of local government assets.
Help to Buy ISAs have been superseded with Lifetime ISAs (LISAs). They’re meant to help you save for your first house – or your retirement.
You may save up to £4,000 each year with a LISA. The country pays a 25 percent incentive. All sides of a marriage will have their own LISA and profit from the incentive, similar to an Aid to Buy ISA.
The difference is that you may either utilize the funds like a Help to Buy ISA (to pay off a mortgage on your first property) or keep saving into the account until you reach the age of 50. You’ll only utilize the money until you’re 60 years old, which means a minimum of ten years of compounded interest plus a 25% bonus.
The LISA was established to encourage people to put money aside for retirement. One method to safeguard your future investments is to go on the property ladder, while another is to pay for savings that you won’t be able to access until you’re 60.
You’ll willingly sacrifice the 25% incentive and pay a 6% charge on any money you withdraw that isn’t for a first home or if you’re over 60, assuring you’ll take out less than you put in.
The Help to Buy ISA, which is a cash ISA, is not the same as the LISA. This guarantees that you will make annual contributions to both your LISA and a cash ISA.
Auctions on the Internet
Online auctions are helpful for discovering below-market deals since you don’t have to see the property and some online auctions give you a long time to close. This provides you plenty of time to complete the transaction with your potential buyer. You may buy homes in the United Kingdom without leaving your house because these auctions are held over the internet.
Online auctions are also a great method to get some experience with possible purchases. Take online tours of properties and analyze repairs, for example, and keep your maintenance estimate in mind when making a real deal.
Look For Properties That Are Below Market Value Online
Search filters in online real estate software, such as DealSourcing, allow you to set up for the focus points you’re looking for.Proptech technology has simplified this procedure and created a platform that serves as your personal property agent.
Thanks to algorithms and the power of automation, the platform will discover properties from all over the internet and sort them on the market by percentage of BMV at 10%, 15%, or even 40% below market value. You’ll also be able to find homes with the greatest Return on Investment (ROI), which measures how much money an investor can make on a given investment.
You can save time, money, and resources by using it. The main goal of this platform is to find properties with a high yield. If you’re seeking for UK Below Market Value homes, DealSourcing.co is a no-brainer.
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.