While those already with property revel in the red hot housing market, those seeking to buy their first home or even move up the ladder are having some difficulties. Prices surge with continued interest, and it appears everyone who can feasibly throw their hat in is doing so.
Even though it’s been nearly two years of incredible house price growth, the Economist doesn’t expect the global housing boom to come back down any time soon. Anyone looking to buy a new or their first home will need to accept this new state of play.
However, even though the prices continue to surge to levels that would have been laughed at just two years ago, there are still ways to cut costs here and get the best deals there.
Rent to allow yourself time to shop around
Of course, the vast majority of people seeking to buy a home are either paying rent or living with relatives, with neither being particularly enviable situations to want to stick with in the long-term. However, to get the best prices and find ideal homes, you should try to be in as little of a rush as possible.
The tips from Vox say that you almost always overpay relative to what you would were you to be on a more cautious timeline. Having a base while you explore your options allows you to think clearly, not need to rush into a “great deal,” and put yourself in the best position for a potential haggling session.
Use trusted free services wherever possible
Getting a mortgage and moving home is an expensive process, with there being loads of little costs that come up along the way. Still, there are ways to save while ticking the boxes along the path. This can all start by applying for a mortgage in principle so that you know exactly how much you can borrow but without the usual costs.
The Trussle mortgage in principle will accurately calculate your borrow limit, check your credit history and eligibility with 18 lends, and do it all for free. Accessible online and at your convenience, it’s also worth noting that while this MIP is legitimate and can be used by you, it uses a soft credit check so as not to harm your score. This is one way how technology has simplified this process for home buyers.
Squirrel away as much as you can for the deposit
House deposits were always the big hurdle to get over as a prospective buyer, but with house prices surging, the same rules of X percent make the hurdles into pole vaults. Still, the more that you can save to put down as a deposit, the more likely you’ll be able to unlock more cost-effective mortgage rates.
Most lenders require a five percent deposit, which means that you’ll pay five percent of the house’s value upfront to then be able to get a mortgage. The Nerdwallet look at house deposits explains that lower interest rates can be unlocked with larger deposits. Still, you’ll need to work out if you can viably save enough to put down a larger deposit, more towards the ten, 15, or 20 percent mark.
Target the fall and winter to enter the market
There will likely be fewer houses on the market, but those that are there will, on average, be receiving fewer offers. So, it’s a less competitive time, and sellers want to sell. This gives you a great chance to haggle down the prices. Especially if you’re not in a hurry yourself. You can use this to your advantage as the estate agent will certainly want to sell the home and move on, so you’ll have more wiggle room on the asking price.
House prices may be sky high right now, but there are plenty of ways that you can save some money during the whole process.