Buying A House At The Top Of Your Budget
What is the Best Way to Save Money on Property Prices?
Buying a house is not cheap, but there are ways to trim down the almighty costs. If you’ve been saving up and are thinking of getting on the property ladder or are making a move, here are a few ways that you can bring down your budget.
Think outside the box
The property prices nowadays are ridiculous, which is making it harder and harder for first-time buyers. However, there are creative ways of making it on the first rung. The price of housing in rural areas can sometimes be a third of that in big cities. There are then alternative solutions such as going down a self-build route – often half as cheap as buying a house at the same location, although acquiring the land can be a tricky process.
Container homes are a self-build choice that is becoming increasingly popular. You may also be able to find a cheap decrepit property that can be renovated and sold for a profit. All these options take a little extra work but may be worth the dramatically lower costs when buying a house at the best price possible.
Skip out the middle man
More and more people are opting out of estate agencies and buying/selling direct. When selling a property, this can particularly beneficial for cutting out the agency fees. When buying a house at times it can also have its financial benefits, allowing you more leverage to negotiate the price.
Negotiate with the seller
Most sellers will allow room for negotiation, although generally no more than 5% of the property price. Whilst this may not sound like a lot, consider that 5% of 200,000 is 10,000 that you could be saving – enough to buy a car and a few holidays.
Consider alternative mortgage solutions
Mortgages with fixed rates can be limiting. Some companies such as Cornerstone Home Lending offer alternative mortgage solutions to suit individual clients. Some companies meanwhile may allow you to take out multiple mortgages from other companies, which could reduce interest rates. If you’re buying a house at the top of your budget, choosing such a method might be more ideal.
A fee free mortgage broker can also save costs, as well as the stress spent shopping around. For those with a low credit rating, this may be the best option of securing a mortgage. Getting turned down multiple times for loans can damage your credit rating further and a broker can minimise this by knowing the mortgage lenders most likely to not turn you down.
Close the deal at the end of the month
There are all kinds of ways to save costs on your average mortgage payment but perhaps the most reliable way is to close the deal at latest in the month as possible. Lenders will collect interest for the current month as it ends. To close the deal at the beginning of the month will result in you paying an entire month of interest, whilst closing at the end will result in you only paying a small fraction’s worth. Having just shelled out on a deposit, this could give you a little breathing space so that you don’t feel like you’re being bombarded by costs all at once.
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