Your Dream Home is More Affordable Than You Think
Taking possession of the home you’ve always promised yourself is all about following a smart strategy.
Whether it is a penthouse apartment in a fashionable London suburb, a country retreat with land and outbuildings, or a historic stone cottage in a picture-postcard rural village setting – most of us enjoy spending some idle time surfing sites like Rightmove and picking out our dream property.
Of course, surfing the net and dreaming is one thing, but we have to come back to reality sooner or later, and we do so with the vague promise to ourselves of “maybe one day.” But perhaps you can make “one day” sooner than you think. Interest rates are low, 900,000 pound mortgages are becoming commonplace and more people than ever are moving into their dream homes on millionaires row by the age of 40.
These are perilous times for sellers, so if you happen to fall upon the home of your dream, you are in a strong position. Nobody knows with any certainty what is going to happen to property values after Brexit, and you can bet that anyone selling right now is doing so because they need to.
Keep this in mind and don’t be shy about putting in an offer that’s well below the asking price. Sure, they might slam the door in your face, but they might also be glad to at least have a buyer who’s ready to negotiate. The point is, if you don’t ask, you will never know.
Check out all the mortgage options
The world of mortgage products is a far more complex one than it was 20 or so years ago, but many buyers still find themselves trapped in a 20th century mindset. Shake off those shackles and you open up a world of opportunity. There is no need to just think in terms of 25 or 30 year repayment mortgages, for example.
The best thing you can do here is speak to a specialist who deals in high value mortgages. By all means check out your high street bank too, and see what is available, but you will find a specialist broker will have access to a wider range of products available, and on more flexible terms.
If you’ve found your dream home but it is still outside your price range, don’t give up. Reassess your calculations, and do everything you can to make the numbers work. Nobody is advocating overreaching yourself financially, but if it is a relatively small amount, for example £25,000 over your budget, that might only translate to £70 or so per month and suddenly it looks a lot more doable.
You also need to exercise flexibility when it comes to the home itself. A great way to become a resident on millionaire’s row is to buy a property that needs some work and modernisation. Sure, it might not be the home of your dreams when you first move in, but be patient and carry out upgrades one at a time as you can afford them. When it is all done, it will be a home that carries your unique stamp and nobody else’s.