The average age of a first-time home buyer in the US is around 33 years old. This figure is up from just 29 years old a decade ago. It is certainly getting more difficult for young people to get on the property ladder these days, due to a combination of factors including rising house prices, inflation, energy bills, and interest rates.
As a result, many people resign themselves to the fact that they will never be able to afford a home, and continue to rent well into their later life. Although the difficulties of buying a home if you are young and on a low income are very real, it is still possible to make it work. As long as you are smart with your money and consider all the options, you have the ability to purchase your very first home.
To help you out, here are four tips for first-time buyers to get onto the property ladder.
Once you have paid off your initial deposit, the monthly mortgage payments will be perfectly manageable. Especially if you are used to paying rent to a landlord. You will likely find that your monthly contributions are much less once you are a homeowner. However, that initial down payment can be tough to obtain, and the average house deposit in the US is between $10,000 and $15,000.
You may be able to acquire this sum over a period of years by saving your money wisely. This will be much easier if you are moving in with a spouse or partner who can also contribute. Learn how to manage your household budget and put some money from your salary aside each month. Cut down on unnecessary expenses and you will eventually be able to pay your deposit.
If you’re on a low salary, you may not be able to afford the mansion you’ve always dreamed about. But you can still buy a comfortable, attractive home in a pleasant area. You just need to be realistic with your expectations. Analyze your budget and do some research into the housing market so you know what you can afford. It might be that you can afford to buy an apartment rather than a house, or need to compromise on the location. Look at real estate websites such as Meriton Apartments to see what is currently on the market.
Buy with someone else
If you want to buy a house by yourself, you will find it a lot more difficult, especially if you have a low income. It may be worth waiting until you have a long term partner with whom you can split the financial contribution equally. If you don’t want to wait for “the one” to turn up in your life, you could always buy it with a friend or family member.
Talk to a mortgage broker
If you’re unsure how to get started, it’s a good idea to speak to a mortgage broker. They will be able to look at your income and lifestyle and use their expert knowledge of the housing market to help you identify what you can afford.