It can't be overstated that paying rent is dead money. Renting will never make you rich, but it may well make your landlord rich. If you can buy rather than rent, do so, and do so as soon as you can. With both property and shares, timing entry to the market is secondary to being in the market - long term returns on both exceed all other asset classes - get in and stay in.

 

However, as property prices are well above trend currently, it is increasingly hard for renters to get onto the property ladder and make the switch from rent to mortgage. If you can't afford it, stay renting until you can, and then make the switch. In other words, don't switch from rent to mortgage at all costs - use our Make Money pages to increase your income or your deposit funds - then take the plunge when the maths are sound.

 

If you are simply holding off from buying your first property because of the current fall and potential return to long-term trend in house prices, then be aware that house price crashes appear only as small blips on the long-term trend chart. Those who endured previous house price falls didn't have to wait long to see a return to strong gains - only those who put themselves in positions where they were dependent on capital gains didn't survive. Do careful calculations to ensure you could weather a downturn and choose carefully a property to which you can add value in a rising or falling market. Use our Property page for further information.

 

If renting is for you then Camelot Property offer you a way to rent at just 20% of market rental rates. You effectilvey babysit empty properties that would otherwise atttract squatters. Usually you rent a room in the property as do others, so it is a house share. Properties range from castles to appartments, but be aware that some may be bordering on derelict. Also be aware that sometimes you may have to move out at very short notice. If you have few possessions, no ties and a vehicle large enough to move your possessions then Camelot Property can provide you with accommodation at just £25-£60 per week. Check out the current list of available properties here.

 

Mortgage  

 

Make sure you're on the best mortgage deal possible. It's generally a trade-off between being tied in to a lender for longer or getting a worse deal - noting that being tied in for longer may mean you miss out on better deals elsewhere further down the line. Work out what's right for you - just don't fall for any gimmicky deals whereby an up front sweetener such as several thousand pounds cashback is recouped many times over by the lender in higher rates and fees. See the reputable national newspapers for the Best Buys out there then study the detail of the offers. Mortgage deals can be complex, so just make sure you take into account ALL fees and charges in your calculations. If you're looking to switch an existing mortgage then see what your current supplier can offer and negociate with them - if you can strike a good deal, it will be free of the legal fees, surveys and exit fees that come with switching to a new lender.

 

After filling your tax-free ISA for the year, consider overpaying your mortgage. Even with regular mortgages, you are often able to overpay, and also to take some of that money back out again. Make sure your mortgage terms and conditions don't penalise you for overpaying and, if you think there's a chance you may need the money in future, make sure it allows you to get the cash back. Before you consider mortgage overpayments, ensure you have paid off your more expensive debts such as credit cards and loans (i.e. the ones with higher interest rates).

 

Work on paying off your mortgage as early as possible, using our Make Money pages combined with our Save Money pages. Don't accept the mortage as a permanent feature on your balance sheet. Reducing and then eliminating the debt will save you tens of thousands of pounds in interest, and will most likely be the single greatest change to your cashflow. The key is a multi-pronged attack of money saving and money making, smart action across your finances rather than increased slogging, and whatever mix is right for you.