3 Tips For Getting Into The Real Estate Market
When you’re in your 20’s and finally starting to settle into your career, the dream of owning your own property might seem a bit impossible. With sky-high prices and a market that seems to shut everyone out; young adults are often forced to rent for longer than they initially intended.
It doesn’t have to be like this, though, and you might be able to get a foot into the real estate market as long as you know where to look. Here are some tips to help you on your way with your homeowner dream and finally seal the deal so that you can move into a home of your own.
Image via: Pexels
1. Look for a home outside of the city
Everyone wants to live in the city and this is the reason for the prices of those apartments being so damn high – where there’s demand! While all of your friends and family may be located in the city, it’s a good idea to look for opportunities that are just an hour or half an hour away so that the prices can drop a bit.
You can always move back when you have worked up a bit more finances and when the bank is willing to approve you for an even bigger loan. Buying a place that is slightly cheaper will, after all, get you into the real estate market once and for all – and you can always use it as an investment property and just rent it out rather than living there yourself.
Buying a cheaper fix-me-upper is also a great way to get started on the real estate market as long as your willing to actually fix it up. This is something that will cost quite a bit of money down the line, though, and it might take a year or two before it’s ready to be resold or even lived it.
2. Find bad credit opportunities
If your credit score is slightly out of touch, you might have given up on your real estate dream for the time being. You can still get a loan, though, as long as you find the right lender and remember to look at the disadvantages too as it certainly won’t just be perks when you’re borrowing money with bad credit.
Have a look around the web to learn more about finding a bad credit secured loan and read up on other people’s experiences as well. If the conditions seem alright, you will be able to buy your own home and can get your finances back on track a bit sooner too.
While you will be able to get a loan and might even secure your very first home, the conditions will often be a bit stricter when your credit score is poor. Keep this in mind when going through your options and consider whether or not it’s worth the repayments you have to make in the future.
3. Ask for help
If you have looked at everything that is available outside of the city and had a talk with various lenders about getting a loan even if your credit score is low, you might want to have a chat with the people you’re closest to. While asking for help can be a bit dreadful to any of us, it will definitely be worth it if you’re able to secure a home of your own.
Your parents, for example, might be willing to put down a form of security or even sell an apartment to you for a bit cheaper as long as you pay them back the balance over time. Even better, they might be willing to make a deal with you where they take up a loan which you’re in charge of paying back. That way, you can enjoy the benefits of owning your own property a lot sooner than you would have otherwise.
Don’t take this for granted, though, and use it as the last solution if nothing else should work in terms of buying your first home. Not everyone is in a position to give you a loan or even take up one in their own name so don’t expect anything when you approach them with your question. Be humble, grateful, and look for solutions elsewhere if this doesn’t work.