Did You Jump On The Property Market Too Fast?
There’s a lot of pressure for millennials to buy property. As soon as you move out of the house you lived in with your parents, you are pushed and urged to find a new place to live. Why rent? They say – that’s dead money and instead you should get your first foot on the property ladder, buying a home that you can then use as capital for years to come.
However, there are a few problems with this idea. Firstly, research shows that millennials struggle to save and as such cannot gather together a substantial deposit. Due to this, they can not access better mortgage deals and instead are often stuck with high-interest rates and difficult mortgage payments. But that’s just the beginning.
Home prices are exceptionally high anywhere with the average home price being around nine times the average income. This makes it almost impossible to afford a home outright and makes the time it takes to pay it off insanely long.
On top of this, there is the other costs of owning property that you simply might not be prepared for. As well as mortgage payments, there’s tax, home bills, and maintenance. All of these can be a lot higher than people expect, compared with living in a rented accommodation.
As such, you might find yourself in a difficult position if you bought your own property too early. But what should you do about this?
Sell It Off Fast
If you are really struggling to stay afloat with the property that you have purchased, you may want to consider selling it off as quickly as possible. Depending on the market or time of the year, you might struggle to interest private buyers to take your property on. But there are always house buyers that are businesses and run a business model around the idea of buying property that people can no longer afford and want to sell fast. As such, there is no need to get trapped under the weight of the home expenses.
You might find that the cost of your property is more difficult now than it used to be. Or, that the costs have changed and if that’s the case you should consider renegotiating with the lender who provided you with your mortgage. They might be able to offer you a way to handle the financial pressure more effectively offering you a better deal.
Boost Your Income
You could also consider boosting your income to make the house more affordable. One of the ways you can do this would be by renting out a spare room in your property. If you live in the city, we recommend renting it out to a student who wants to live by themselves. Make sure you set strict rules for the lease and as well as this ensure that you also get a guarantor contract. That way, if they can’t pay the rent and bills for whatever reason, someone else will. By doing this, you can then use this source of income to alleviate the pressure from owning the property.
Disclosure: This is a contributed post.