Thanks to the rapid increase in house prices across the country and the stagnation of wages, the average UK adult won’t buy their first home until they’re 30. In London, where it’s even harder to get your feet on the property ladder, the average age is 32.
However, there are some intrepid entrepreneurs who get started much earlier. People determined to make the most of their cash often invest in property in their early 20s and even late teens, giving them plenty of time to grow their portfolios and learn all there is to know about this exciting market. So how can young people get involved in the housing market? And are you ever too young to invest in your first property deal?
If you need a mortgage to finance your property investment, you’ll have to wait till you’re at least 18 to get started. Some lenders even require homebuyers to be over 21 or 25 when they apply for a mortgage, so it’s important to shop around if you wanted to get started early.
Buy to let
Though in theory buy to let mortgages are open to people aged 18 and up, in practice, getting a buy to let mortgage as a first time buyer can be tricky. If you haven’t previously held a mortgage in the UK, only a few lenders will consider loaning you the cash. Talk to a mortgage advisor to find out what your options are or team up with a parent or friend who has previously owned their own home.
One of the biggest barriers standing in the way of young property investors is cold, hard cash. Getting enough capital together for a deposit can be difficult, especially with property prices going up every week. In general, residential mortgages require you to have a minimum 10% deposit for your home. For a buy to let mortgage, you’ll need at least 25%. You’ll also need to show you have a decent income and few outstanding debts if you want to secure a mortgage.
Other property investments
Though buying and letting houses are the most common types of property investment, there are other options out there. If you’ve inherited an old building and want to convert it into flat, have a piece of land that’s ripe for development or another building project in the works, you can invest your money in bringing these to fruition.
To find out more about property investment opportunities in your local area, or to find out how we can help you develop your property projects, get in touch with a member of our team today.
To find out more about the local and national property market, or if you would like to chat about anything to do with property investment, give us a ring on Norwich 01603 567804 or send us a message.
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