From student loans, to struggling to afford food, individuals attending post secondary schooling face huge financial issues. Due to the time school consumes from one’s schedule, most students can only get a part time job. In most instances, this small amount of income barely covers the cost of food, transportation, necessities, and clothing. When it comes to finding a place to stay while attending school, most students will live at home, at a dorm, shared apartment, or with a friend/relative. These options aren’t suitable for all students; many wish to purchase their own property while attending school, and that’s simply difficult to achieve. Here is the reality of affording a property as a student.
The Impact of Student Loans
Having a high amount of debt because of student loans is a factor that can prevent you from being approved for a mortgage. If you aren’t able to cover most of your tuition through scholarships, your job, and assisted coverage (through work, help from parents etc.), then you will have a low chance at affording a property. Unless you can prove that you have a way of paying for your school and covering mortgage payments at the same time, student loans will stop you from owning your own property. “The reason why most students can’t buy their own property is because of the hefty student debt from loans. If you have a reasonable loan that can be paid off in the near future, taking out a mortgage is a more realistic possibility,” shares Lon Finley, journalist at Essay Writing Services.
Find a Reliable Cosigner
A cosigner is a individual who is typically older than you with prior financial experience. Your cosigner can be a friend, parent, relative, partner, or other influence. When selecting your cosigner, you must make sure that they are reliable. This means they have to have a healthy financial history that includes things like: a high credit score, balanced spending habits, and have been able to pay off their own debt and loans. The purpose of a cosigner is for them to put a good word in for you while you are applying for a property. They can conclude that you are ready and able to make mortgage payments. In the worse case scenario that you can’t make payments, or need assistance, the bank can rely on your cosigner to help you cover the costs. As a student, a cosigner may be the deciding factor when it comes to you achieving your dream of owning your own property.
Financial Management
Without a steady income, you certainly won’t be able to own a property while attending school. Banks will check to see how much money you are making, and how certain expenses will affect your remaining funds to cover loan payments. If you don’t make enough, regularly spend your money on unnecessary things, or fail to pay off debts in a reasonable frequency, then you have a poor financial management history. In recent years, some students have been creative when it comes to how they earn money. “Side hustles like freelance work, starting a small business, and doing one off jobs like house sitting or dog walking has helped students earn extra income. This may be an option for you if you need more income to go towards your student loans and potential mortgage,” claims Joey Campbell, writer at Assignment Help.
Buying a Property With a Friend or Significant Other
The easiest way you can actually obtain a property as a student is by buying one with somebody else. The combination of two students buying a property is more realistic and sustainable. There can be several complications when buying a property with another. Fights, separation, and one individual not putting their fair share in can make this option risky. Only apply for a mortgage with another if you both have a plan for what’s going to happen. Don’t take the chance if you aren’t confident that your friend, significant other, or counterpart will keep their word.
Though it’s a huge responsibility, students can buy a property with the right resources. Having your own place can teach you valuable lessons and help you transition into adulthood.
Writer Madeline Miller works at Top essay writing services. Madeline writes about youth property management.