Buying a house in your 30s can seem like something of a pipe dream. Media reports of increasing house prices, high interest rates for first time buyer mortgages and lack of housing have you writing off owning a home before you’ve even looked into it. Buying property seems like something your parents and previous generations could do; to you it appears impossible.
The process of buying a house can also seem rather daunting too. But with some simple financial planning and/or support from the government, you could be on the property ladder in no time.
Essential saving strategies that help you become a homeowner
1) Savings:
Set up a monthly direct debit from your current/main account to your ISA/savings account. Synchronise it to come out on the day you normally get paid. You won’t really notice it leaving your account and even if it’s just a small sum, it soon adds up. There are now also apps to help you save. Moneybox helps you by rounding every one of your purchases to the nearest pound, putting the difference into savings. Although only a few pennies at a time, again it all adds up!
2) Financial planning:
See what’s out there. Don’t write off home ownership until you’ve spoken to the professionals who know what’s within your reach. A new set of eyes on your budget and goals will help clarify steps you need to make to achieve your homeowning dream. A trained personal financial advisor like those at IMC is able to give you bespoke advice whilst setting out a plan for you to live by and work towards.
Government schemes
The government is aware of how hard it is for young people to buy a house. It provides several schemes to support you on your road to owning property:
Right to Buy: Right to Buy is for tenants in England, Wales and Northern Ireland who rent their home from their local council. It allows qualifying tenants to buy their home at a discount. The discount amount varies depending on where you live and the type of property you want.
Shared ownership: Shared ownership lets you buy a share of a home from the landlord, who is usually the council or a housing association, and rent the remaining share.
Help to Buy London: The Help to Buy equity loan scheme is a government scheme set to run until 2020. It’s available to first-time buyers as well as homeowners looking to move – but only for new builds.
Starter Home scheme: The Starter Home scheme is a new government plan where 200,000 new build homes are available to first-time buyers under 40 years-old with at least 20% off the market price.
Don’t go at it alone
UK first time buyers (FTBs) aren’t just helped by the aforementioned schemes. In fact, the ‘Bank of Mum and Dad’ is a major factor when it comes to getting FTBs on the housing ladder.
If independence from parental funding is what you’re aiming for – good for you – think carefully about another relative such as a cousin or sibling at a similar age, or a close friend. The important considerations here are the financial commitment you’re entering into together. Think about everyone’s future plans in terms of career and relationships as well as how well you would co-habit with them.
It’s true that the kind of property you can afford will be greater if you have a combined income with which to apply for a mortgage as well as shared savings to dip into for the deposit.
To explore ways at getting onto the property ladder with a clear and manageable financial plan, speak to one of our team today, we would love to hear from you:
Tel: 020 3761 6942
Fax: 020 8392 6112
Email: info@imcfs.co.uk