Top Tips For Young People To Get On The Property Ladder

NathalieM By NathalieM, 10th Sep 2013 | Follow this author | RSS Feed | Short URL http://nut.bz/414i8ddt/
Posted in Wikinut>Money>Property

It's a difficult time for young people to get on the property ladder, so here are some useful tips to help you get started.

Find Stability- Get On The Property Ladder

Hello young people! I’d just like to say a big ‘Hello’ and ‘Welcome’, because it seems like this world really doesn’t make enough effort to do that for us. We as young people have a very difficult time in many respects, financial constraints keep many of us in very dire straits and the job economy doesn’t look good at the best of times.
If you’re lucky then you’re earning a little bit of money, and if you’re sensible you’re putting a good piece of that away for a rainy day. The point of doing that might be a number of things. You might simply have your eye on some shiny new designer shoes, or you might want to invest it in a business venture.
The fact of the matter is that a lot of young people in particular have a very hard time when it comes to making sensible decisions. Let me tell you right now, buying designer shoes is not a very sensible use of your hard earned cash – blasphemy, I know! Embarking on a business venture is a very exciting thing to do, but it could back fire – what you really want to do is find some stability.
Well, a great way to do that is to get on the property ladder. House prices keep screaming skyward so it’s probably wise to get on it sooner rather than later. But how do you do that exactly? It can be a little bit daunting for young people who don’t know about these things – but let’s explore the practical concerns of property buying and learn a little bit more about it, which should yield some useful tips.

Can I Buy?

The first thing that you’re going to want to do is ask yourself ‘Can I Buy?’. Of course everyone wants to buy – but you really need to know if it’s a feasible investment. If not, it’s probably best to save for a little while longer until it is.
Things to think about when considering whether you’re in a position to buy property include;
• How Much Do You Have? – This is a very important consideration. House buying usually relies on paying a deposit on the total price in order to get a mortgage. It’s usually around 10%. So if you’ve found a house for £100,000 and you’ve got £10,000 saved, then you’re more likely to be able to get a mortgage. This might sound like a strange tip, but you could ask relatives for help to get you on the property ladder – it’s easier to pay a mortgage once you’ve got a deposit taken care of, and you can always repay them later!
• Are You Earning – If you don’t have a regular income, you’re probably going to find it quite difficult to make your mortgage payments each month. Consider how stable your income is, if you’ve been in a job for a year or two then you’ll probably have a good degree of stability. If you run your own business then you should make sure you are dedicated enough to maintain that level of stability. Freelancers are particularly susceptible to working when they want to, and might not earn enough. So make sure you’re earning enough to pay for the property before buying, you don’t want to have to sell soon after buying.
There are many government schemes available for first time buyers, for example there is a Help To Buy scheme now in the UK that allows first-time buyers to save on their deposits if they are buying a new build home. This was discussed in an article by Rowena Mason of The Telegraph newspaper recently. Do your research and see if you qualify for any of these schemes – you might as well use the help if you can get it.

What Am I Going To Do With The Property?

This might sound like a little bit of a silly question, you’re probably saying “I’m going to live there, obviously” – and that’s fine. Most young people who buy a property will choose to live in it, but there are a few other options.
• Letting – You can make a nice side-income by letting your property. If you buy in an area which is popular with short term tenants like students then you can have the option to move in once your tenants leave at the end of the academic year. University towns are a good place to buy if you want to let, for example the amount of letting agents Brighton has to offer is quite substantial and shows there is high rental demand compared to a more rural area. Buying in these types of areas means there is a higher likelihood you can find a tenant.
• Combination Approach – You could quite easily let 1 bedroom in the property and live in it as well, this means that you’re independently living and you have a helpful additional piece of income to give you a hand with paying the mortgage – which might give you a bit of breathing room. Finding people to live with can be a struggle, but there are many websites and communities such as SpareRoom out there that can help you find someone to let your bedroom to. You could also ask your own friends, but be careful – it’s not easy being someone’s landlord and it could put a strain on the relationship!
You could also potentially develop and sell the property, but that might defeat the purpose of the investment. Although that can make you some quick cash you will be off of the property ladder, and for young people who aren’t already homeowners it’s always better to keep a foot on the ladder than take one off.

Young Homeowners – The Possible Dream

With all the doom and gloom that floats around it can be quite easy to get dejected and think of owning property as an unobtainable dream. There is no doubt that it requires a fair degree of hard work and some sacrifice, but it’s definitely not out of reach.
So, keep your head up and look forward – investing in property is one of the best things that a young person can do. Not only does it give you a foot on the ladder, it can also put you in a much stronger position in future – so in many cases the sacrifice is worth it.

Thanks For Reading

Thanks for reading. Please let me know what you think of my piece! Also, check out the rest of my work on WikiNut if you liked this one. I’d particularly suggest you read “Decorating Your Home On A Budget” for some nice hints on décor if you do invest in property.
Don’t forget to follow me on Twitter - @MartinNathalie9

Tags

Buying A Property, First Time Buyers, Letting Agents Brighton, Property Ladder, Tips

Meet the author

author avatar NathalieM
Hello! I'm Nathalie and I love writing about what makes my world tick! Fashion, weddings, interior design, health, property..You name it, I will write about it!

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author avatar madugundurukmini
10th Sep 2013 (#)

nice post

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author avatar Ryan
26th Oct 2013 (#)

Purchasers looking to buy a flat should consider the running costs including the all important service charges and ground rent which must be paid by each of the leaseholders. When buying a flat make sure your solicitor finds out from the managing agents how much the service charge will be and obtains copies of the accounts for the last 3 years. In addition the property management company or its agents should be asked to answer a detailed questionnaire regarding regarding the property, its condition, repair, maintenance and financial position. http://www.vfmproperty.com

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