The Challenges to Purchasing a Residential Property in 2019: Is there a solution?

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“My grandfather used to say: ‘It is my house I am paying the bills’, my dad used to say: ‘this is my house I pay the mortgage’, my generation is saying this is my house I pay the rent.” – Csaba Gabor-B.


With the continued rise in residential property prices, it is increasingly challenging for the millennial generation to purchase a home. As the quotation mentioned above by Csaba Gabor-B notes, “my generation… [says], this is my house, I pay the rent.” 


The opening statement is further validated by an article in the dated 29 June 2019 and titled “For now, residential-property prices are likely to keep rising.” The author of this article notes that ten years after the recent financial crisis, residential property prices have risen consistently and are at new highs. 


Additionally, the article highlights that, even though stocks and bonds are the main focus of global investors, the value of global property is more than $200 trillion US dollars. And, the decrease and increase of house prices are “crucial harbingers of economic trends.” 


In other words, even though the cost of residential property prices is currently high, and they are still climbing as we speak, property is still considered a cornerstone of any long- term investment portfolio. And, the house price trajectory, whether up or down, is a forerunner of global economic trends. Moreover, in order to determine future economic trends, it is worth keeping an eye on property prices. 

Solutions to the challenge of purchasing a residential property


Therefore, if you are looking for a reliable, long-term investment, or you need to acquire a place to stay for you and your family, even though residential property prices are high, it is still worth purchasing a home rather than renting one. 


Thus, the question that must be asked and answered is not whether you should purchase a residential property, but how do you go about buying a house in a residential area?


Here are several tips that form part of a comprehensive solution to affording a residential property. As an aside, these pointers are equally important so are in no particular order.

Choose a reliable mortgage lender 

Different mortgage companies have varied offerings to help potential clients with their affordability criteria. Bluntly stated, financial institutions make money via interest and sundry loan charges when their customers take out a mortgage via a particular institution. Therefore, it is to the organisation’s benefit to help clients buy residential property. 


However, the caveat is that it is risky lending large sums of money to clients. Thus, the Seattle mortgage lender needs to mitigate the risk of offering home loans to clients by balancing the amount loaned against the client’s ability to repay the loan and the value of the property.

Build up a good credit profile 

One of the most important elements of being granted a mortgage is the strength of your credit score. Essentially, a positive credit score translates into reduced risk to the mortgage company. And conversely, the lower the credit score, the higher the risk to the mortgage company. Furthermore, the higher the credit score, the better deal you will get from the financial house. A mortgage deal includes aspects like a lower interest rate and a larger loan amount. 


Thus, it is vital to build as high a credit score as possible over your entire working life. It will help your loan affordability scores and allow you to purchase a residential property both as an investment and as housing for you and your family. 

Choose carefully

It is vital to have a clear idea why you are purchasing a house. Is it primarily an investment property that you can let out to repay the mortgage? Or are you buying a residential property for your family. Both of these reasons have equal merit. But the location criteria will be different based on these primary reasons. If your family includes school-going children, it will be better to purchase a home near the schools that the children attend. Conversely, if your rationale behind purchasing a home


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