Is there such a thing as a reasonably priced home nowadays? As house prices continue to climb, home lenders appear to be placing more pressure on first-time buyers than ever before. Are there any low-cost housing options, and if so, how do you go about locating one?
There are a range of other home-buying alternatives available, ranging from LISAs to property auctions.
- The Rent Problem
- Property auctions
- BMV Properties
High rent has made it impossible for many new buyers to accumulate enough money for a substantial mortgage, delaying home ownership until later in life. According to existing research, potential home buyers believe they will not be able to buy a home until they are 34 years old.
Rent increases have forced many people out of the property market, notably in London. In the United Kingdom, rent accounts for more than 30% of a family’s income, with a staggering 61 percent in London.
Food, taxes, auto maintenance, travel costs, and electricity bills all have less money available each month as a result of these estimates. How are people ever going to be able to save money again?
To buy a house the traditional manner, you’ll need at least a 5% down payment, and a 10% down payment if you want a decent interest rate. First-time buyers must set aside at least £12,000 because the average cost of a property in the UK is £235,298 (Note that this does not cover the expense of searching for and purchasing a home).
To address the issue of home affordability, the government implemented initiatives such as stamp duty holidays and Help to Buy many years ago. Although these initiatives were well-received, the strict requirements that accompanied them restricted the number of people who might benefit from them.
Additional initiatives, such as Lifetime ISAs and municipal governments expanding joint ownership plans outside of local government assets, have been adopted since then.
Lifetime ISAs have taken the place of Help to Buy ISAs (LISAs). They’re designed to assist you in saving for your first home or retirement.
With a LISA, you may save up to £4,000 each year. A 25% incentive is paid by the country. Similar to an Aid to Buy ISA, each couple will have their own LISA and benefit from the incentive.
The distinction is that you can use the cash in the account like a Help to Buy ISA (to pay off a mortgage on your first home) or save until you reach the age of 50. You’ll only use the money until you’re 60 years old, giving you at least ten years of compounded interest plus a 25% bonus.
The LISA was created in order to encourage individuals to save for retirement. Going on the property ladder is one way to protect your future assets, while paying for funds that you won’t be able to touch until you’re 60 is another.
You’ll gladly sacrifice the 25% bonus and pay a 6% fee on any money you withdraw that isn’t for a first home or if you’re over 60, ensuring you’ll withdraw less than you put in.
The LISA is not the same as the Help to Buy ISA, which is a cash ISA. This ensures that you will contribute to both your LISA and a cash ISA on a yearly basis.
Because you don’t have to visit the property and some online auctions offer you a lengthy time to close, internet auctions are useful for finding below-market buys. This gives you plenty of time to finalize the deal with your prospective buyer. Because these auctions are performed via the internet, you may buy properties in the United Kingdom without ever leaving your home.
Online auctions are another excellent way to gain experience with potential purchases. Consider taking virtual tours of homes and analyzing repairs, for example, and keeping your maintenance estimate in mind when making a real purchase.
Look For BMV Properties Online
Search filters in online real estate software, such as DealSourcing, enable you to set up for the focus areas you seek. Proptech technology has streamlined the process and developed a platform that acts as your own real estate agent.
The platform will locate 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, thanks to algorithms and the power of automation. You’ll also be able to locate properties with the highest Return on Investment (ROI), which evaluates how much money an investor may make on a certain investment.
It can help you save time, money, and resources. This platform’s main objective is to discover properties with a high yield. DealSourcing.co is a no-brainer if you’re looking for UK Below Market Value houses.
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