If you’re to enjoy a comfortable life, especially in retirement, you need to own property. This could be your own home in the country in which you spend most of your time or an investment property overseas, though there should be little doubt that owning property is essential to enjoying a comfortable existence.
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Whilst the importance of owning property is common knowledge, fewer young people are buying property than in the past, which is a worrisome trend because property ownership helps to stabilise and provide long-term viability to local communities.
Views on property ownership are changing as time goes by, but does that mean that property ownership is any less important? Not at all, it’s still of great importance for local communities, as well as for individuals and their families.
Loans and Young People - It Seems Impossible So Why Bother?
Yes, loans can be difficult to apply for and there’s often so much involved before lodging an application, but why have so many young people adopted such a defeatist attitude to loans and property ownership?There are many opinions on the subject, with some pointing to the different values young people often espouse in comparison to previous generations, but it would also seem as though many young people have given up without even trying to apply for a loan to purchase property.
That’s a mistake because property ownership has many benefits to offer each and every one of us and the sooner an individual applies for a loan and buys a home or investment property the better. Here are three of the many benefits associated with owning property.
1. Property ownership builds wealth over time
The tremors – some would say earthquakes – felt throughout the property market over the past few years has made many people question whether property ownership is the wise move it has long been touted to be.
However, property prices have stabilised and once again it has become obvious that buying property is beyond a doubt one of the best ways to build wealth over time.
2. There are tax benefits to take advantage of
There are many tax benefits to take advantage of when you buy a property, especially when you apply for a mortgage to buy a home. Many young people overlook the fact that they can deduct the interest their mortgage incurs from their tax obligations.
Whether you choose to apply for a loan to buy property through your local bank or a mortgage broker, discuss the tax benefits with the loan officer or broker. Chances are you’ll be pleasantly surprise to learn how many tax benefits there are.
3. Buying is cheaper than renting in the long term
It mightn’t seem cheaper when your loan repayments are due, but buying property works out much more affordably than renting in the long term. By repaying a loan you’re buying an asset, quite the opposite of paying rent as you’re simply paying off your landlord’s loan.
When you pay rent to a landlord instead of repaying a home loan you are essentially throwing money away. Rent money is dead money – that’s something all financial experts can agree on.
Where to Start
Getting started is likely to be easier than you may have initially thought, but that doesn’t mean you’ll be able to buy a property this year, or even the following year, because there’s plenty to plan and prepare for if you’re to successfully apply for a loan to buy a home of your own.1. Saving for a deposit
It takes most people years to save for a deposit which is normal and something you just have to accept. To speed up the saving process, look for ways to put your money to work by, for instance, depositing your savings in a high interest savings account.
2. Sourcing loan providers
There are so many loan providers to choose from that it’s normal to feel a little overwhelmed. Speak to family and friends who have applied for loans before and if you’re still feeling out of your depth go through a loan broker.
3. Applying for the loan
Applying for loans can be stressful. However, when you have spent adequate time researching the application process and have prepared everything you need, it’s actually quite straightforward. It maybe also worth noting the details of a well established service of process specialist should their advice be needed.
4. Registering your property
Once you’ve successfully applied for a loan and bought a property, you will need to register it in your name with Land Registry. This is the best way to safeguard your property and avoid issues pertaining to adverse ownership.
You may not be looking at applying for a loan and buying property for a few more years, though it’s important to understand the process involved and the things you need to prepare if you’re to successfully apply for a loan with which to buy a home.
