The pandemic may have put a halt to almost all industries in the market, but the needs of the consumers continue to evolve and increase. The retail industry, for example, has been severely impacted by COVID-19 but the people’s need for clothes, footwear, and bags remains the same. The same goes for the real estate field where home buyers or renters may have paused for a while on their quest to find a new property, but their need for it is still very much evident.
But, of course, since the pandemic has also affected the earnings of consumers across the globe, it’s only natural that they start to look for alternative ways to afford their needs. If it’s a new house that you’re looking for, it’s best to look into different ways available to get affordable housing in the post-pandemic market.
Shared Ownership Schemes
Shared ownership is a government-backed program that helps buyers purchase a share in new builds or resales properties. This lets people who don’t have any current property to pay for the mortgage of the share they’ve acquired, thus requiring them to settle a down payment that’s significantly lower than what usual home purchases would ask for.
Purchasers are also given an option to grow their share as they live on the property. This process is called ‘staircasing.’ In most cases, buyers are able to staircase completely, and when that happens, they no longer have to pay their rent. What they need to settle is just their mortgage, as well as any ground rent or service charges that may apply.
With shared ownership, it’s possible to own a home even though you can’t outright afford to purchase it on the open market, especially in this post-pandemic era. The costs are generally more affordable and the payment scheme is also easier to keep up with.
Do note that to be eligible for this scheme, you need to be at least 18 years old. There’s also an income requirement depending on where you’re purchasing the share.
Finding A Mortgage Lender
If you really have no means of shelling out a big amount of money for the down payment, you can consider looking for a mortgage lender to help you out. There may be banks, credit unions, and online lenders that are offering loans with lower interest rates, which could potentially help you save more.
The key is to find a lender you can easily and smoothly work with. Be in the know-how and make sure the lender is also well aware of the process of buying a new house in the post-pandemic market.
Watch Out For Early Bird Reservations
There will be instances when you’re so interested in a particular home or property that’s not yet for sale. Then, there’s also the challenge of obtaining the money for the purchase. While you may not be able to fully pay the down payment to secure the property in your name, it’s still possible to end up owning your dream home. How? Through an early bird reservation.
What will happen is you just need to pay for a certain amount to secure your slot. Along with the payment, you’ll be asked to fill up a form and then wait until the property is made available for sale. The developer or housing company will contact you to let you know that the house is already on the market. You’ll be given 48 hours to respond if you want to push through with the transaction or not. If you give it a go, you’ll need to settle the full reservation fee. If you don’t think you can make it work, you can say no, and the money you paid for the initial reservation will be refunded.
While the amount of the property isn’t reduced or discounted through the early bird reservation, it’s an alternative that you can consider if you see a property that you really want and you don’t have the money for it yet. The waiting time might give you an allowance so you can move things around and hopefully raise the amount that you need. If it’s not doable, you don’t need to worry because you can still have your money back.
Conclusion
Despite everything that has happened so far, houses and properties remain to be a great investment. You may think that this isn’t a good time to make a purchase as big as buying a new home, but, in reality, the best time depends on your capacity to afford it.
Look into the different ways to find affordable housing, such as the shared ownership scheme and the early bird reservation promos. Lastly, look for a lender that knows the process inside out so you can be at an advantage when trying to purchase a property in the middle of a pandemic.