Mar 18, 2021
How to Buy a House in 2021
The dream of the white picket fence and owning your very own home can become a reality if you know where to start.
Have you looked at your finances and thought, “will I ever get there?” We all have goals and dreams but money matters can hold us back, especially when you’re living paycheck to paycheck. Let’s also not mention the unexpected losses of COVID-19 and its impact on the global economy. But if I told you that you could buy a house making $12 to $16 an hour, would you believe me?
Is It a Good Idea to Buy a House in 2021?
Buying a home is always a good idea and in 2021 it’s a seller’s market. More people are looking to buy property which has increased the demand while homes up for sale can seem few and far between. Fortunately, if you stay on top of the market, you can buy a home in good condition and at the right price.
How to Buy a Home with a Low to Medium Income
We’ve all heard it and we all know it, saving! Saving is the best way to buy a home. Even if it takes a few years of putting away an amount you can afford every month, work on your savings and you can purchase a home.
Are You Ready to Buy a Home?
Once you’ve started saving and you have enough for a deposit, the next step is to ask yourself if you’re ready to buy a home?
If you are applying to a lender for a mortgage, there are a few financial aspects you need to meet.
- Employment and Earnings
Lenders are looking for fully employed applicants who earn a full salary and can cover the cost of the monthly mortgage repayments and interest.
2. Debt Management
Lenders are also going to look at your debts. Before applying for a home to buy, focus on reducing your debt. Sound debt management and not having to dedicate a large portion of your income to your debts can place your application in a better light.
3. Good Credit
Work on improving your credit report. It is much harder to get a mortgage if you have bad credit.
Look at Property Prices in Areas of Interest
Buying a house on a low to medium income is possible but be prepared to be flexible. You may not get the house in the area that you desire but looking just outside of your first choice can introduce you to some incredible properties and at a price to fit your affordability. By looking at average property prices, you get an idea of the going rates and what to prepare for financially.
Be Flexible with Home Features
House buying can be tricky especially when you’re committing many years to pay off a mortgage. To help you find a house you can afford, it is a good idea to be flexible. You may not find every feature on your wishlist but a comfortable place to suit your lifestyle.
For example, you may need to sacrifice the big yard for a smaller or low-maintenance garden, or you may need to upgrade the property over time to create the modern space you desire.
What You Should Know Before You Make an Offer!
Look into property prices and speak to an agent familiar with the area! Before you make an offer learn whether any developments will be going up close-by. The purpose is to first avoid paying too much on your deposit and repayments, and second to prevent moving in when large construction projects are expected. You also don’t want to move into a home only to have a major commercial development go up nearby. Don’t be hasty, do your research to protect your investment.
Buying a House, Final Thoughts
Buying a house in 2021 can offer some great properties at fair prices but only with research. Owing to the economic downturn many homes are being sold for a lot less than their original market value. With research and time, you can find a place you can afford.
Don’t get caught up in the buying frenzy though! If you can’t afford it, then move on and wait until you find something to suit your needs. It will happen, believe it and it will come to you!
