There are many resources to purchase a cheap UK property, and buying has surpassed renting as the most economical course of action. This is for a number of reasons. For one thing, the number of new buyers that enter the market is continuously declining despite the fact that buying has become more affordable than renting in recent years. This decline has been mostly attributed to an increase in the required deposit size and closing fees. In fact, the average deposit needed on a property purchase has doubled in the last decade. Other costs of home buying have gone up as well, including estate agent fees and stamp duties.
All this has led to affordability gains for investors looking for a cheap UK property relative to renters, especially in the past three years. Average mortgage payments have also declined dramatically because of falling mortgage rates and house prices. Conversely, rents have steadily been rising with a strong demand for rental accommodations. Despite the improvements in affordability in home buying, the number of new purchasers is continuing to fall. This has been further fueled by the widespread uncertainty of the UK economy.
If you are looking for a cheap UK property, there are several guidelines to follow that can make your search more productive. The first step for any property investor or buyer is to research their local market as carefully as possible. It’s important to understand all of the potential benefits, as well as any risks. If it’s for investment purposes, compare whether your funds may be better placed in a money market or savings plan that yields an acceptable return. Also, even if you do find a cheap UK property, you’ll want to determine its potential saleability later on.
Shop around to find the best possible mortgage. Nowadays, banks and building societies have become very competitive due to less housing demand. If you are uncertain about mortgage negotiation, you may be well advised to consult with a mortgage specialist. Also, keep in mind that almost all listed properties can be purchased for a price less than their initial offering. This is especially the case in a tough housing market. Therefore, make the lowest offer and never get talked into paying more than your desired amount.
Learn to identify property repossessions, as this can save you a lot of money. For example, many auctions include distressed properties that are being liquidated by lending institutions such as a bank. At any given time there are thousands of available properties being auctioned across the UK. Have a clear understanding of how property auctions work before deciding to purchase. This knowledge can help you to find a cheap UK property that closely matches your criteria.
By Furkat Elmirzaev