Are houses for sale in your dream neighborhood in the suburbs still out of the financial reach? Your savings are rising, you’ve accumulated enough to have a deposit, but as soon as you’re ready to visit the lender, house prices for sale go up. Again.
Unfortunately (or thankfully if you feel better), many first-time buyers are riding the same boat. According to many recent statistics, the overall average real estate prices in the capitals of many countries have been increasing continuously.
In retrospect, if you had been looking at a house in the desired area a year ago that cost a certain amount, the price could now go up to several percent.
However, you shouldn’t let this act as a silencer in your dream of owning a home. If you find yourself in the desired location, don’t be afraid as there are many ways to get into that real estate market – a small compromise is enough. Here are some helpful tips:
1. LOOK AT HOUSES IN NEARBY LOCATIONS
Many professional real estate agents recommend extending your search to the surrounding suburbs. If prices in areas adjacent to an ideal location increase at a much slower pace, this could mean increased growth in the future, which means an effective investment!
2. CONSIDER A SMALLER PROPERTY
If location is more important to you than home, are you willing to compromise and buy a smaller property? If your answer is yes, we suggest starting with a small amount before climbing the ladder.
As your capital grows over time, you can refinance your home loan or sell a smaller property to buy the home of your dreams. In fact, statistics show that homeowners in many countries can already follow this advice. Refinancing has been the main driver of growth in the tenant loan sector in many countries in recent years.
3. RENT YOUR PERFECT PLACE
If you don’t live there yet, have you considered renting in a suburb of your choice? This allows you to get a feel for the surroundings and decide if this is really the place where you would like to have your home.
This is one of the first things you should do as it will ultimately allow you to make an informed decision as to whether the price is reasonable.
4. BUY REAL ESTATE INVESTMENT
If you can’t afford a property in your ideal neighborhood, why not take a look at rental properties in other suburbs you want to invest in? As long as you choose the right home and property manager, you can earn rental income and capital gains, allowing you to buy the perfect home in the future.
Affordable houses – dreams come true.