Becoming the 27%: Owning Your First Home
Want to start paying off your own mortgage rather than somebody else’s?
Many of us dream of owning a first home. However, the reality is that it’s tougher than ever.
But – no one’s saying it’s impossible!
Unconvinced? Maybe we can change your mind…
How hard is it to become a first time buyer?
So, just how hard is it?
24 – 34 year olds earning between £22,200 and £30,600 a year have only 27% chance of owning a home.
This is largely due to the struggles of saving while paying rent (particularly in the cities), difficulties affording a mortgage and general lack of understanding about the property market.
Changing your mindset
27% isn’t high, but it’s not impossibly low either!
Owning a home gives you a chance to invest in your future, rather than put money into someone else’s pocket.
Plus, if you choose the location wisely and look for opportunities to invest, you can make a nice profit when you eventually come to sell!
When you rent your home, there are many restrictions you have to deal with – such as decorating or pets. In your own property, these days will be behind you.
However, while this sounds good in practice, how easy is it to achieve?
Can you already afford it?
Asking yourself what home you could afford?
You might already be in a position to buy without realising it!
Many would-be first time buyers are paying sky-high rent prices, which can often be more expensive than monthly mortgage payments.
Or, if you’re still at home with your parents, this is the perfect opportunity to save.
We made it our mission to lower the age of first time buyers. A huge part of this involves equipping hopeful homeowners with the knowledge they need to ensure a smooth property purchase! We’re here to help first time buyers!
What do you need to do to get your foot through the door?
Step one is always having the right mindset! But, of course, this will only get you so far.
Here’s a quick guide to get you where you want to be.
Save today, not tomorrow
Time to stop putting it off. Saving for a house deposit can be tough, but everyone has to start somewhere.
Have a goal amount in mind, remembering that you’ll typically need around 5%-20% of the house price. Note: in some cases, the more you save, the more attractive your mortgage options will be.
Tips include everything from moving back in with family to cutting back on unnecessary expenses e.g. going out for lunch. Every little helps, after all!
Work towards a tangible goal
Make a plan and try to stick to it.
- Where do you want to live?
- Set a budget for how much to spend
- What type of property are you looking for?
- How long do you plan to stay there?
- What’s your timeline?
The clearer the idea in your head, the easier it will be to work towards it. For example, give yourself five years to save up enough and become a homeowner.
Property hunting can be difficult enough as it is, let alone if you don’t know what you’re looking for!
Speak to the experts
If you haven’t owned a home before, it always helps to get some advice from the experts!
You’ll need a conveyancing solicitor to assist you from start to finish. A conveyancer will take on roles such as liaising with the seller’s solicitor, dealing with paperwork and being the point of contact for your mortgage lender.
We can connect you with conveyancers who work on a no win no fee basis. Getting a solicitor quote is easier than you might think!
Top tips for first time buyers
The more you know, the simpler it will be to own a home.
If you’re unsure where to start, we’ve got some advice to get you on the right track.
Follow a checklist
There’s a lot to consider when it comes to buying a home. Missing out any vital steps can cause havoc later on down the line.
Following a first time buyer checklist can help you ensure you tick off everything you need to, and don’t forget anything.
Consider using the government
The government can help you buy a home!
The 95% mortgage scheme, Help to Buy Equity Loan and shared ownership scheme can all give you a leg-up onto the property ladder.
Each scheme has its pros and cons, and some aren’t for everyone. So, you need to carefully weigh each of them up before making any decisions.
Factor in the extra costs
While saving can be tough as it is, it can be made tougher when you forget to budget properly. It’s not just the property itself you need to save up for.
From insurance costs to ongoing mortgage payments, there’s plenty to consider. Don’t get tripped up by these!
Do your research
When buying a home – the more you know, the better. Arm yourself with as much knowledge as possible to help you every step of the way!
You’re about to make a huge investment, possibly the biggest you’ll ever make. So, do as much research as possible sooner rather than later.
One area where this is most vital is the location of your potential new home. You’ll want to know everything about it, such as local schools, crime rates and who the neighbours area. Phil Spencer’s property report can tell you all of this and more. Tempted? Get yours below.
Last Updated: September 22nd, 2024
