The Best Ways to Finance Your Household

As experts in the real estate world, we know that financing your household can be a subject that brings you more than one headache. For that reason, we wanted to simplify the options for you.

Going through the bank is undoubtedly the most popular method to finance the purchase of a new home. You can always resort to the most classic option: request a mortgage. Depending on the bank, your mortgage will last for more or fewer years, but most are usually at 25.

The fact is this: do you trust the banks after the failed one? And even if you still trust them: would you mess with these kinds of entities in bed for 25 years? If this idea neither appeals to nor convinces you, welcome to our creative list of new (and not-so-old) ways to finance the purchase of a new home:

1. Share your home with a co-owner

Not as common as the handy mortgage and is much more original. Some people buy houses sharing the expenses of this with another party. In this way, the house has two owners who do not have to be friends or relatives. Depending on how much each party has contributed, they share the deed to a home and its use over time. The truth is that this is an excellent way to finance a second home. Consider the following situation: you buy a house with a person who is only interested in spending two months a year there. You would live in it for ten months, and your co-owner two, in which you could go on vacation!

2. Buy an entire building with a group of co-owners

Everyone gets a piece of the cake in this cooperative of owners: each one their apartment. So, everyone shares ownership of the building itself, but you don’t have to share your home with someone else. Considering that you choose your property colleagues, they should all be to your liking and sympathy. It would be the ideal solution to end fights with neighbors.

3. Have you heard of the two-stage mortgage?

With this type of mortgage, you can have a fixed interest rate for 40 years. In this way, you will pay less than usual, but longer. In any case, after ten years (or the period that you have agreed with your bank), you will be able to review your mortgage and modify or adjust it if you wish. This option gives you more flexibility when organizing your payments.

4. The three of always: family, friends, and crazy

Pay special attention to your network of contacts. You never know who the potential sponsor of your dream home could be! Your friends might be interested in investing in a property that you will enjoy, and they could trust that you could pay them back at some point in the course of history. Similarly, your relatives can act as your patron.

Of course, beware of spoiling family vacations for the next few years. Return what you owe at the right time; thus, Christmas dinners will not become a verbal or physical battle!

5. Crowdfunding: use the power of the masses

Crowdfunding is a form of financing that has become quite popular recently, especially in start-ups. Crowdfunding is a way of raising money and support for a specific project: starting a business, helping launch a new music album or even helping someone buy a house or a car. There are countless websites where you can publish your projects and where people can participate so that they become a reality. For your pretty face! In addition, you can give gifts to your economic collaborators when you reach your goal [or not…]

Although we cannot finance your house, we can help you find it. We will be your guides in the search. We will give you all the advice we can from Trovit. We are sure you will find what you need on our website and blog.