Fortunately, there are things you can do to make buying property in a city more feasible. Below are just a few tips for affording home ownership in a city.
Choosing the Right Area
Home prices in a city can vary a lot by area. Often, the more central districts are the most expensive. Property in the suburbs can be slightly more affordable, but there are still certain neighborhoods that could be quite expensive within these suburbs.
The cheapest areas of cities are often the least desirable. Quite often, high crime areas and neighborhoods near airports are cheap – but you need to seriously consider whether you’re willing to make these sacrifices.
New areas of development are sometimes some of the cheapest and safest options. While these can be far away from the city center, you could find that property here is cheap and there are no other big sacrifices like a high crime rate because there’s no established community as of yet.
These areas are typically popular among first-time buyers and there may even be discounts in place for these types of buyers.
Consider a Condo or a Townhouse
A detached three-bedroom house is a luxury in many densely populated cities. Instead, you’re better off looking at other types of property.
Condos are apartments that you can purchase. While they lack outdoor space and square footage, they can be a lot cheaper than houses. You may even find that you’re able to afford property in more attractive areas by considering condos – just check out these El Dorado condos by the sea! For many first time buyers in cities, condos are a popular option.
Townhouses can be another option for aspiring homeowners that want slightly more room. These are houses directly joined to other houses (sometimes referred to as ‘terraced houses’). They’re popular in many cities, often still have backyards and are a lot cheaper than detached houses.
Buy a Fixer-upper
A fixer-upper is a property that is not in great condition. While this could mean lots of expensive repairs and renovations ahead, you typically won’t have to save up as large a down payment – these properties can be very cheap to buy.
Just make sure that the property doesn’t need too much major work. Any problems should be things you can initially live with or easily repair yourself such as bad paint jobs, outdated fixtures and scratched flooring.
Look into Local City Homebuyer support schemes
Many cities around the world have their own support schemes in place for first time buyers. This could include grants, special savings accounts, discounts on certain property or special loans. For example, Los Angeles has 1% down payment mortgages and grants in place available to certain first-time buyers.
Always do your research into these local support schemes and take advantage of any schemes that apply to you.