A tough task for any thrifty person is buying a new house. Houses are very expensive, and can be difficult to pay for. But, if you use these three tips, then you can easily save money on your new house:
Get a Loan
One of the best ways you can save when buying a house is to get an equity loan. Luckily, the government offers a ‘help to buy’ loan for house hunters. This is a loan of up to 20% of the value of the property, and can be paid back any time. As Linden Homes have noted, this loan used to be for first-time buyers only. Now, however, it is for anyone looking to buy a house.
The advantage of this is that it gives you a little bit of extra money to help with your purchase. You also only need to put down a deposit of 5%, which is very affordable. I should note, the ‘help to buy’ loan is only available for new houses. These are houses that have been built recently, you can’t use it for an old style home.
A great way to save money on anything is to compare prices. Don’t just look at one house then buy it. You should compare house price in the area you’re looking at to see if you’re getting a good deal. Or, look at similar houses and see if there’s a major difference in price. You could see a house for £400,000 and think it’s a good deal. But, there could be a similar house on the market for £300,000 in an area close by! It’s important you use all the price comparison tools available to you on the internet and in real life. Moving house is a huge deal, it’s not something you rush into. If you want to buy a new house, then the process will need to take a while. You have to spend the time searching prices and comparing, if you want to get the best deal available.
Pay What You Can Afford
A guaranteed way to lose money is to pay for a property you can’t afford. It seems like a simple concept; you only purchase something you know you can pay for. But, many people take out massive mortgages and buy their dream home. The problem is, they can’t really afford to keep paying the mortgage, so they slowly slip into debt. Then it becomes a slippery financial slope, and before you know it, their house is being repossessed. Don’t fall into this trap. Only take out a mortgage you know you can pay back without any added trouble. Even if it takes you years and years, it’s important you can afford the annual cost without it affecting your normal life.
When you’re buying a house, remember that you still have other things you need to pay for. You might think you can afford the mortgage payments, but in reality you can’t! Only buy a house if you can afford it, you’ll end up saving lots of money in the future.