How To Afford Your Dream Home

How To Afford Your Dream Home:

Your dream home is likely expensive and may seem like a far-fetched prospect – but what if there was actually a way to afford it? Here are a few ways in which you may be able to get closer to owning your dream home without being a millionaire.

1.  Shop Around For Mortgages

There are lenders out there that specialise in large mortgages for premium homes. Generally, they come with large down payments and other large fees, but if you’ve got a good credit score you may be able to lower these initial costs. Having youth on your side can also help – young people are able to opt for longer term mortgages, which could mean more affordable repayments as you’re not paying such large chunks each month.

2.  Consider The Location

For some people it’s not the property itself but the location that make it a dream property. Areas like Jersey Shore can be very sought after and very expensive if you’re buying a house, but you may be able to lower the price by looking into Jersey shore condos for sale. If location doesn’t matter as much to you and its all about the property, then you may be able to consider more rural and less popular areas. Consider states like West Virginia that have some of the cheapest property prices – you could pay five times less for a luxury villa here than you would in somewhere popular like Hawaii.

3.  Buy A Property With Friends And Family

Buying a property with other people could allow you to share out the costs. A lot of people take out a mortgage with a partner – however you could expand upon this by considering the option of living with other family members and friends. This could allow a group of you to split the mortgage. Divided between four people, an 80k deposit could work out as 20k each – which is a lot more affordable. Of course, you all need to have a good credit score and good financial history.

4.  Plan To Renovate

There may also be the option of transforming a cheap and plain home into your luxury dream home by renovating. You could even restore a home that’s in disrepair. This does involve having the money to pour into a renovation but you may be able to save this gradually.

5.  Save Up Strategically

When saving initially for your dream home, think of strategic ways to get there. By using high interest savings accounts, you can increase the rate at which you build your savings. Some of these may require you to contribute a minimum amount each month in order to get these interest rates. You could also consider investing your money into a certificate of deposit – you won’t be able to access it for a couple of years, but at the end, it will have gained a huge amount of interest. Then, of course, there are other ways to invest your money to grow it more rapidly such as peer-to-peer lending and more risky strategies like stocks and shares.

Best,

[a contributed post]