This tiny island has a real property shortage, especially if you’re on a budget. Cheap homes are getting ever more expensive as people prepare their wallets to fork out more and more. Demand has never been higher, especially for places with good transport links. If you’re a young homeowner, it’s going to be even more daunting.
Getting a Good Mortgage
Getting a mortgage is the hardest part of getting a property. Not only do you need to save up a huge deposit, but you need to shop around to get the best rates. Of course, a young buyer will be unable to afford a large deposit, especially if they are renting already and having to fork out for bills and so on. The lower the deposit, the higher the interest rate, which, in the long term, could cost tens of thousands of pounds more.
More Landlords, Fewer Properties
More people are moving away from the traditional sort of investment such as shares and so on, towards buying up property and letting out. This of course means that cheap properties (the staple of many landlords and investors) start getting bought up, furnished, and therefore more expensive. The opportunity to buy a cheaper property (due to its condition) and spend your own time and money renovating and adding value to it, is declining.
A Shift In Ownership Pattern?
With this in place, it sets the seed for less property ownership and more rents. People are starting to rent into their thirties and even their forties before buying. What first time buyers must hope for however, is that the government steps in with more initiatives because at the moment, the investor is favoured above the homeowner.
If you’re a landlord though, picking up a cheap property for your portfolio and getting the appropriate landlord insurance is most definitely the way forward.