How to Buy A Home When You Don't Have Any Money

Housing Associationsprices. If you know what you're doing (and particularly if
Shared ownership is a good way of getting on theyou're good at building) you can pick up a real bargain
road to owning your own home and you can do ithere. But there are pitfalls:
through a local housing association. The housing- Getting a mortgage for a run down place will be
association buys the property outright then you buy adifficult so be ready to pay cash for it upfront.
share of a property off them (with a mortgage) and- For other properties you need to have at least a 10%
you pay a small rent on the rest. You can then go ondeposit ready to put down on auction day. The rest
to buy further shares, and eventually own the propertyhas to be paid within 28 days so you will be best off
outright later on.having a mortgage sorted out beforehand.
There are usually long waiting lists for these schemes- You should get the property inspected before you
and they usually operate on a kind of points systembid on it, which could set you back a bit.
where the longer you've been on the list the more- It's easy to get carried away with the excitement of
points you have. You also get extra points in somethe auction and you may end up bidding for the wrong
areas if you're a 'key worker' or if you have children orproperty.
currently live in a home that is obviously bad for your- You could end up with a complete lemon.Buying with
health.a lover or friend
To find out about buying a home in stages from aTwo wages are better than one, especially if you're
housing association contact the Housing Corporationlooking to get a fairly large mortgage, but as the old
office covering your area. They'll send you a list ofsaying goes, money matters with a friend or lover
registered social landlords (RSLs) operating thesealways leads to problems. You need to know you can
schemes in your neighbourhood.stand living with them day in, day out, but even if
Ex-council properties (Right to Buy schemes)they're wonderful, you should get things ironed out by a
If you are lucky enough to get a council property youlegal expert to protect you both. Several lenders now
may have the right to buy it although you do have tooffer mortgages for pairs or groups of friends to buy
be careful. Some council properties - particularly thosea property together, but make sure that you have
in large, poorly-maintained blocks, may be very difficultwater-tight contracts between you about how the
to re-sell and won't hold their value. People who haveproperty would be divided up if one or all of you wants
been living in the property for a long time (at least 15to sell some time down the line. 
years tenancy) may be eligible for substantial discountsSelf-build
of up to 70% of the value so it may prove worthwhile.Over 25,000 people build their own home each year. It
You might find it hard getting a mortgage on certainmay seem a bit extreme, especially if you have little
properties, so be warned.experience in this field, but you don't have to be a
The Starter Home Initiativebuilder yourself, just be willing to look for land, bring in
If you are a key worker, like a nurse, police officer oran architect and have the patience to project-manage
teacher, you could get on the Starter Home Initiative.the works while the house is being built (probably 12-18
The program was created to help people doing 'key'months).
jobs, like people in healthcare and education, to buyThere are more and more mortgages on the market
homes in expensive areas, and has been very usefulfor self-build schemes and many will lend up to 95% of
for those who qualified for help. There are variousthe cost of doing the building. A well-run self build
ways in which this scheme helps key workers. Have aproject should see the final value of the home
look at the Government website where you can find aincrease by 20-30% on the actual building and land
fact sheet on the scheme and contact details for yourcosts once it is finished. So, if you're prepared to wait
area.and do the work, you can make some sensible money
Auctionson it.
At auctions they have hard-to-sell properties at lower