When considering the options to buy a house, know that there can be many. Some main ones are discussed below.
Though it doesn’t fully fit in, getting a house constructed on the land that a person already owns is one of the most economical ways to buy a house. Much of the exchange margins and other fee gets eliminated when a person is getting a house constructed instead of buying a pre-existing house. So buy a plot, and get the home built according to the expectations, and save tonnes of money. Sounds good, right?
Though it is not existing in all regions, this is one great scheme. In this, a tenant (any first time home buyer) is enabled to buy a small portion of a house and is supposed to pay the rent of the remaining portion of the house. The person can later, as convenient, buy more share of the house to extend his share in the house or to wholly own the house.
In the states where such schemes exist, it is mostly in favor of the first time house buyers. Thus it can be a great way of a person with no personal property to get into the property ladder and build some assets. Certainly is it one best way to buy a house.
For investment purposes or for temporary residing purposes, one may consider buying a house on joint ownership basis. Now, what s joint ownership and how is it different from shared ownership? In joint ownership, an individual and some other people who are trusted, pool in the amount in equal proportions to buy a property. No rent has to be paid for the remaining portions, unlike that in the shared ownership scheme. The owners would share the property or the profits received by investing in it equally or in the proportion in which they contributed to invest in the property, based on the terms as it may. This is a good way to build assets without having to take the burden of buying a whole property on one person.
Now, auctions aren’t something that one may catch up any time he or she wishes. Simply, auctions hold up for a very small proportion of the entire property market. Moreover, depending on the wear factor, the property auctions may not be equally accessible for all. Also, auction procedures and announcements may vary for different states.
However if one can make into it, auctions are one of the decent ways to buy a house at reasonable and competent costs.
In many states, the government helps the first time house or property buyers with the aim of maximizing social welfare. The process can vary largely, from lotteries to registration etc. so would be the aid provided by the government. In some cases, the government sells newly constructed properties at a rate lower than the average market price, while in some cases, the government might help by lending some proportion of the total amount at rates lower than the market interest rates. Also, there might be different eligibility criteria on the basis of income or such as well. One may want to scan through the local schemes to know more about government aided purchases.