Published: 03/08/2022 By reallymoving.comThere is nothing worse than saving up and working hard to be able to afford your first home and then realising that you can’t find anything in your budget that you actually like.
If you can’t find anything in your price range that you love, the first thing to know is, you aren’t alone. Many First-Time buyers find they can’t afford their ideal home. In fact, even those already on the ladder usually have to compromise in some way when they buy.
Part of the reason is that when you are looking for a property, there are just 7% of homes owned (outright or with a mortgage) available for sale at any one time. When you know this, it’s quite a miracle anyone finds the property they want when they happen to be looking!
The other reason is that unlike factory-produced goods like cars, which are produced for every budget, where supply can be increased or decreased according to demand, property is in short supply. With people living longer, our population is growing and there are not enough homes being built to meet the demand. We are currently trying to fit four generations of people into three generations of housing stock!
One of the reasons that renting has increased in popularity is that it’s often cheaper to rent in more expensive areas than it is to buy, especially when it comes to houses. So, one option might be to rent in the area you want, get to know it really well and wait for a property you can afford to come onto the market.
Another way to look at buying your first home is to remember it’s just that: it’s your first step on the ladder and all you want to do is secure a home of your own. It won’t be perfect. It might not have as many bedrooms as you want, the lounge might be smaller than you wish – or the property might not be as nice as the one you are currently renting. However, if it gets you on the ladder, this can be the next step on the way to the property of your dreams.
People will often move three or four times in order to secure the property they really want. Work out what you can afford and buy the ‘best you can’ for now and hopefully as property prices rise, you can build the equity (the overall value of the property, minus the mortgage or debt amount) in your home. As you build equity and hopefully earn more income, you should then be able to trade up to the next property, or two, and finally make it to your dream home.