How To Afford To Buy Property In A City
Buying property anywhere nowadays is expensive. So just how do people afford to buy property in a city? Unfortunately, for many people living in cities like New York or London, getting on the property ladder is pretty much impossible unless you’re lucky enough to inherit a large amount of money. This is because deposits and monthly mortgage fees on properties in these cities are so expensive. However, there are ways to reduce the costs of buying property in a city, which can make home ownership in a city more achievable. Below are just a few tips.
Choose the right neighbourhood
Property prices can vary depending on where in a city you’re willing to live. Take Manchester as an example – in the borough of Trafford, the average home costs about £375,869 to buy, but in the borough of Wigan the average home costs just £169,462. You can even get cheaper prices by considering what part of the borough you’re willing to live in – in Platt Bridge in Wigan borough, home prices are as low as £119,337 on average. All in all, if you’re not too fussy about location, you can make big savings.
Look into city house-buying help schemes
Many of us are aware of house-buying schemes like Help To Buy and Shared Ownership – but did you know that some cities have their own house-buying help schemes? This includes grants that can help to pay towards your deposit or in some cases special mortgages with low deposits. For example, New York has a HomeFirst Down Payment Assistance Program that can provide buyers with up to $100,000 towards their deposit.
Be content with less space
Being content with less space could give you more options when it comes to affording city properties. Bedrooms can have a big impact. For example, the median price of a three bed property in London is around £795,000. The median price of a one bed property meanwhile is around £420,000. Overall square footage and land area can also have a big impact. For those who want a house, townhomes for sale are typically a more practical option than detached houses.
Consider buying a fixer-upper
A fixer upper is a property that’s in poor condition. Such properties are typically very cheap to buy, however you do need to consider the cost of renovating such properties – a £100,000 property that costs an extra £100,000 to improve to a liveable condition may not be such a bargain as you hoped. You can usually save money if you’re willing to do some of the renovation work yourself, as well as shopping around for materials.
Get a high-paying job
This is pretty obvious, but it’s worth noting. Most people who buy properties in cities like London are only able to do so because they have a high paying job. Mortgage lenders will look upon you more favourably, and you’re more likely to be able to save up a big deposit.
Determine whether you really need to live in the city
If after considering all of these tips you still cannot afford property in a city, consider whether you really need to live in the city. Some jobs can be worked remotely, which is enabling more people to buy property outside of cities without having to sacrifice job prospects. Even moving to a town within commuting distance could have an impact – you don’t have to move miles away.
