First-Time Buyer with a Low Income? Check Out These Methods of Making it Work
There's a lot of talk among the younger generations about how impossible it is to even imagine one day buying their own homes. While the state of the economy can seem bleak and fewer people are able to break out of the rent trap than in previous decades, it is still possible for first-time buyers with a medium to low income to purchase a home. Of course, this comes with a few caveats, but if you are keen to buy your own property then continue reading.
Location Choices
Property doesn't cost the same everywhere. A square foot in New York City is not the same price as a square foot in the middle of a rural town with a population below one thousand. Many people feel excluded from buying a home because they have only focused their attention on locations where property prices are often highest. There's good reason to want a home with plenty opportunities, but if settling down in your own property is a top priority then consider looking further afield.
Affordability
For someone with a low income but a healthy savings account, it can be a better option to invest in property rather than eat into your future down-payment paying rent. However, it can be difficult to find a mortgage even if you have years of proof demonstrating that you can afford rent each month. You can click here for more info about mortgages and which mortgage would suit your financial situation best. Affordability is a crucial factor in determining whether or not you are at a stage where buying a home is feasible. If it isn't, continue to save and keep an eye on changes in the market.
Property Expectations
In some cases, simply adjusting your expectations of the ideal property can be enough to make buying much easier. If you have your eyes on a three-bedroom city apartment but can't afford it, rethink your priorities in a home. Do you need to have plenty space, or is proximity to your workplace more important? Write out a comprehensive list of what you are looking for in the ideal home and rank them in order of importance. Once you have done this, eliminate the lowest ranked factors and use your new list to return to your property hunt. You can't always get what you want when on a tight budget, but you can tweak your expectations and open your mind to positive surprises.
Lifestyle Changes
Sometimes a particular lifestyle is what holds a person back from being able to buy their own home. Career, family, and a whole host of other responsibilities can influence the place a person chooses to live. It is up to you to decide which of these matter the most to you. For example, having children comes with huge financial implications, making it much harder for people with lower incomes to buy a home. Again, think about your priorities, what kind of life you want to live, and how this changes your home-buying intentions.
