Considering the volatile lifestyle of a startup owner, and the overhanging issue of Brexit, house ownership in the UK may seem hard to reach. The nuances and costs associated with purchasing a new home are also quite difficult to handle as an entrepreneur, so it’s not quite streamlined as getting a new car, for example.
There is still hope to become a homeowner in the UK, but instead of having your eye on a flat in the middle of London, you find a property in Upper Longcross to be more enjoyable. There is potential for investment in properties on the outskirts of London while being within reason for commuting to the city.
Don't move until you have what you want
Usually, when young folks get a stable job or start a business, they want to get out of the house ASAP. Of course, this decision is also influenced by the values of the family and how long kids past 18 are allowed to stay in the house.
If you are fresh out of university and quite early into your startup, there is no shame in staying at home to save money. You should be in the position to scout out your prospective housing options in terms of price and quality.
If you need to get your feet wet with independent living, it’s a good idea to rent in an area of interest first. For example, you may look for property to let in Virginia Water, perhaps even splitting it with workmates from your startup.
Thinking About Financing
Just like in most other places around the world, mortgages are the primary means of financing in the UK. Foreigners might have a bit more trouble getting financing than locals, but it’s usually done through international banks like HSBC.
To get a loan, you will still need to get a deposit, which can vary depending on your financial circumstances and history. There may also be lender arrangement fees, booking fees. Or completions fees involved.
Fixed-rate and variable-rate mortgages are available in the UK, with a fixed rate being more desirable in the current market. The idea is being locked into a fixed rate throughout the loan period unless you choose to refinance at a variable rate.
It is also possible to get assistance from the government, as demonstrated from the recently launched Help to Buy website. If you rent a council home for more than three years, you can purchase it, often with a monthly mortgage.
The government is also incentivizing young homebuyers under the age of 40 to go with newly built homes. While it may have a higher price tag than a used home or flat out in the suburbs, you are giving a 10-year warranty for damage caused by construction defects. If you go this route, make sure you own the land on the property as well, instead of being stuck in a “leasehold”.
At the end of the day, you should consider investing more in your business and yourself if you’re still not financially stable enough for homeownership. A lot of startups can take awhile to kick-off, so getting stuck into a mortgage for a less-than-desirable property probably isn’t in your best interest, so letting a home with roommates could be the way to go.