Owning a property is a huge part of life. Whether youre looking to find a perfect home or want to flip it for profit, real estate is the answer. The only problem is getting a foot on the first rung of the ladder. As we all know, a property doesnt come cheap. Even with a mortgage, the average owner will need ten percent of the overall price of the house as a down payment. Where on earth are you going to find the cash? Well, hopefully the following will help answer that question.
In laymans terms, a bridge loan is a short-term credit option which lasts for six months to a year or maybe a bit longer. Once you secure a bridge, its possible to use the funds to put the money down as a deposit. With the help of the right bridging finance broker the deal doesnt have to be expensive, either. In fact, some can even tie in a bridge loan with a mortgage so that there is no need for a host of debts. Why not just take out a conventional loan? Well, they arent as favourable when it comes to interest and payment flexibility.
Governments around the world are starting to understand that first-time buyers are in a sticky situation. As a result, lots of countries are coming up with plans that supplement the cost of buying a property. In the UK, there is the First Buy and the Help to Buy options which cover the cost of the majority of the deposit. The USA has a very similar system, but it isnt always federal and depends on the state on occasion. The moral is that the government is there to help, even if it doesnt like the case. With that in mind, dont be afraid to ask local authorities and officials for more information.
Bank Of Mum & Dad
When all else fails, there is always your parents. These people are a godsend because they will help in any way possible. Sure, the odds are low that they will have all the money you need to buy a property. But, a couple of grand for a deposit, or at least a contribution, should go a long way. Of course, etiquette dictates that you have to ask them for help because they wont come to you. However, the answer is mainly yes as long as it is feasible.
Start Saving Early
Finally, do it the old fashioned way and save the money. If you know that you want to buy a house in the future, there is no harm in putting money away every month. Over the course of a few years, your savings will build and build. By the time you make an offer on a property, there should be enough to cover the deposit. And, it isnt even that hard to achieve.
The trick is to save enough to make a difference but not so much that it affects your daily life.