Want to Become a Homeowner? Here’s Where to Start

Owning your own home and never having to rent again is something a lot of people dream of. In fact, it has become somewhat of a milestone to be able to opt out of the rental market and become a part of the world of homeowners – no matter how many obstacles you need to get past in order to achieve it.

Become a homeowner

In today’s market, it’s definitely quite difficult for young people to become homeowners, though, and particularly if they don’t get any help from those who have been there before them. Parents, for example, may be able to step in as guarantors or even give them an advance on their inheritance in order to get a few steps ahead.

But what if this isn’t an option? Here is a handful of ways to become a homeowner even if you’re not able to ask for help from your family members. It just makes the dream slightly more achievable – and you could even open the door to your very first flat a bit sooner than you anticipated.

First: Lower your expectations

Sure, it sounds like a real buzzkill but a lot of young people foster way too high expectations of their first home. It should be in a city of their choice, of course, and preferably close to everything that’s happening in the city – but the city is expensive and particularly flats that you’re able to find in the middle of it.

If you manage to move a bit outside of the city, on the other hand, and look for a flat in a building that wasn’t built during the last decade, you’ll be able to find something for a bit cheaper.

Just keep in mind that this isn’t supposed to be your forever-home or even your dream flat; it’s the first place you’ll buy and it will just be a stepping-stone towards a flat that looks a bit more like something you’ve been dreaming about.

Make sure, first of all, that you’re not buying a place that is meant to be renovated. If the price seems way too good and the walls seem to be caving in, you’ll just end up spending a fortune on renovations unless you’d like to struggle with selling it again.

Opt for someplace small in an area outside of the city, however, and you’ll be able to find a place within your price range and without all the hassle.

Next: Move even further out

Something that a lot of people forget to think about is that real estate markets in other countries are open to foreign investors as well. This could open a lot of doors when the real estate market at home seems a bit closed off; find a country that has a real estate market with potential for growth and where your currency is strong.

It’s going to make your real estate dream come true so much faster and you’ll have a passive income in case you’d like to continue living in your home country rather than becoming an expat. Rent it out to others and focus on making most of your money during the country’s high season in case you’re buying somewhere with a lot of tourists.

Keep in mind, however, that you need to research the country before you do this. Some of them, such as Spain, don’t take too kindly to foreign real estate investors as they end up stealing the money they’d otherwise make of accommodation. That’s why they’re trying to knock Airbnb out of the picture as well so don’t try to list your flat there in case you thought this could be an easy solution.
You might want to have a look around the web to find the best kind of options before you get started. Have a look at this article, for example, for a great overview of countries around the world with excellent real estate market options.

Finding finance solutions for properties abroad

Before you run off and invest in a country abroad, on the other hand, you will obviously need to find a way to finance this as well. If you have enough money saved up to invest everything in one go, you should definitely do this, though; sometimes, it can be tricky to get it finances from a bank at home and banks overseas can be reluctant to giving mortgages to foreign investors.

This is not to say that it’s impossible, though, and a lot of people before you have made it happen. Talk to a couple of banks, first of all, and see if you’re not able to get it financed this way – or consider opting for a built to order flat instead as this makes the financing part a lot easier.

Check out HDB BTO 2019, first of all, and consider this as a solution before you try to convince your parents to take out a second mortgage on their property. Remember to research the potential areas before you sign up for anything, though, and make sure that it’s somewhere up-and-coming so that you’ll be able to rent it out when you’re not in the country or simply so that you’re able to sell it again when the time comes.

Work with a plan

If you prefer investing in your home country, however, you will probably need a bit more money than the properties overseas require. When your family members have no way of supporting you through this and you don’t have a particular amount of money or even a steady job set up, you only need one thing: a plan that will get you to where you’d like to be, in the future.

aerial view of homes

It’s actually that simple and there’s no way around it. No matter how much you’d like to own a place as soon as possible, it’s not going to happen in a few years when you don’t have any money saved up or a steady income to show for. It makes sense, really, and we all have to work for what we want.

Start by working your way through each year and try to figure out how much you’ll be able to save as well as when you’ll be able to have a full-time job. You’ll be able to save even when you’re studying, you know, and it just makes it a bit easier to make the real estate dream come true as soon as you’re out of university and have started with your career.

Go through your mortgage options as well and figure out what the different banks require. You’re going to need quite a bit of money saved up, though, but you’ll also be in a bit more debt if you’re currently living off a student loan. Working next to your studies is alpha omega if you’d like to buy your own place as soon as you’re out of university, in other words.

You can check out this article for some great tips on saving money while you’re a student so that you’re able to create a realistic budget to achieve your dreams.

While some people are able to rely on their parents or other family members in order to buy their very first flat, a lot of people don’t have this luxury – and they will need to make it happen on their own.

As long as you have a plan in mind and are able to work through it until you have a full-time job and a nice sum of money saved up, you’ll definitely make it happen in just a few years.

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