The housing market is imploding! First, there were the sub-prime mortgage failures that led to the global financial crash of 2008; now, the world economy is struggling to recover from a devastating pandemic and geo-political warfare; it’s no wonder new home buyers and considering their options. Here, we offer some alternatives to the traditional property system.
Take Out a Mortgage
Mortgages are by far the most popular way of securing a property over the long term. A mortgage is an agreement with a bank for around twenty-five years; the bank loans you the money to buy the property, and you repay them over that period with regular monthly payments.
Mortgages are a long-term investment opportunity, and they can be useful, especially if you want to pay a lower monthly amount and leave some inheritance behind for your family, but there are a few downsides, especially nowadays. Changing interest rates can affect the terms of the deal.
Buy a Tiny Home
Nowadays, there is a trend toward buying tiny homes to live in long term. A tiny home is a small dwelling that is sometimes transportable. Usually, these homes are about the size of a large caravan and can be towed by a vehicle or set up permanently on a piece of land you can buy.
Of course, there are advantages and disadvantages to this mode of living; on the upside, you can buy a tiny home outright for around $20,000, so you don’t have any rent or mortgage to pay. The downside is that you need a piece of land, and your home is not a long-term investment.
Build a Home Yourself
Another option is to build a home yourself. If you have particular specifications for your property and you don’t like the look of a volatile mortgage market, it might be cheaper and more suitable to contact residential demolition services to clear a piece of land for you to build a new property.
There’s no doubt that building a property is more involved than taking out a mortgage on an existing one; you will have to treat the project like a small business and create a plan that banks and investors can agree to. The upside is that you have full control over its design and cost.
The rent-to-own market might be small, but it does exist, and it’s worth investigating, especially if you are looking to buy your first home. Instead of saving for a home deposit and taking out a mortgage, you can live in a property with a view to buying it, so rent contributes to the price.
In order to qualify for a rent-to-own mortgage, you will have to prove your credentials to the private landlord and the bank. These people need to know that you are trustworthy and have the intention of buying the property; you can then save the deposit as you lease and buy it later.
Buy One at an Auction
If you want a nice home for less, look into buying one at an auction. Auction homes are on the market after issues with mortgage payments or investment opportunities gone wrong; in most cases, you can land a lovely home for less by striking it lucky when you attend on auction day.