How To Climb The Property Ladder Like A Pro
Moving up the property ladder can be stressful and painful for a lot of homeowners. Many buy their first homes with the desire to move within the next few years to a better place and find themselves forever stuck in a crammed two-bedroom house or a tiny apartment that has just enough space for their bed. Another significantly large portion of the population still consider that buying houses is to be left to the wealthy and rich families, and consequently never seize the opportunity to buy their own home sweet home. They are the people who keep paying to rent a property until they have reached the age to move into a retirement home. Buying a house is an investment game that you need to understand and engage with to be able to play it successfully. Indeed, a few standard families are able to climb the property ladder, moving houses regularly for something bigger and better every single time while playing the continual risk game that is inherent to each investment situation. So how do they do it? And more to the point, how could you do it too and achieve your dream house within a few years and without getting out of pocket?
#1. Take The First Step
There is no way around it: If you want to climb the property ladder, the best thing to do, for a start, is to get on that very ladder! The first place that you will buy as your own is probably not a place that you will want to grow old in. It doesn’t mean that it will have to be old and in a terrible state for you to afford it, but you have to be honest with yourself. The first home you buy will be small, it will not be much bigger than a two-bedroom place at best, and it may be a lot smaller to say the truth. This is fine: There is nothing wrong with small. You need to be clear on one thing as you take your first step on the property ladder: Buying your first house as soon as you hit the working market means that you will not need a big place. You are likely to start with a modest monthly pay, and consequently, this will have a great impact on the type of properties that you can afford. As you start looking for your first properties, do make sure to keep all the chances on your side to get the best possible deal. This means that you should make a thorough research of the houses and apartments available for your location and your budget. You should as well start with a proper home inspection before committing to purchase. For your first home, you might want to run the inspection yourself with an experienced friend or relative to identify potential problem areas easily. This can help you to drop the price and ask for the homeowner to get it fixed. Other skills such as timing and negotiation are absolutely key in landing a great deal. Don’t be afraid of negotiating the price down: It doesn’t always work, but when it does it can save you a lot of money.
#2. Look For Advantageous Loan Rates For Your Move
The first mortgage you will get is likely to be a simplistic financial agreement for your first house, especially if it is a small and relatively affordable place. However when you start getting itchy feet and looking for a move, you will be likely to look for a slightly better option than what you currently have: It could be a semi-detached house, a detached house or even a larger and better located apartment. For most people, this move is difficult as there is a huge difference in value between your first property and what you intend to buy as a second property. Don’t panic; this is fairly normal: After all, you are upgrading your home. Consequently the next house or apartment will be more expensive. As a result, you do need to search the financial market for a new mortgage agreement that can take into account your current spending habits, your current income, and your aspirations. When you are comparing house loans, it is helpful to use a housing loan calculator to compare different repayment scenarios and expense cases. This is a difficult time for most homeowners because it often means upgrading the house and downgrading the lifestyle for a little while. Don’t see too much into this: It is about giving yourself the chance to own a new and better home. While the first few years might be a little restrained, remember that being honest with your projected income can make your mortgage repayments a lot easier to deal with.
#3. Make Sure That You Can Sell Your First House Profitably
As you look into upgrading your home, it is time to consider undertaking home improvement projects. Indeed, home projects can add a lot of value to the property and can make your task easier as you are looking for buyers. Keeping a house up to date with its maintenance is essential at this point: This means for you that the works you are planning will be focused on improving the current structure instead of fixing issues. While buyers will naturally want a house that does not need any reparation, they will actually be looking for the house that offers a little extra, such as an extension, a new bathroom or even a small conservatory. Your first step here is, unfortunately, the least exciting: Home improvement projects demand a lot of planning, in short sit at the table and start making drawings and calculations until you find out which renovation work will be the best for your home. As an average rule of the thumb, extensions are particularly sought after in urban areas as they can bring more light into the home and add valuable living space. However, this doesn’t mean that an extension is the right project for your situation! As you decide on a project, you should make sure to look for professional contractors to provide you with the best possible quote and time estimate, as well as expert advice on home improvement. Try as much as possible to avoid DIY unless you are absolutely certain of what you are doing. It’s best to leave the work to professionals! Additionally, it’s always a good idea to give a fresh coat of paint before putting the property on the market: Choose neutral colors to suit most buyers’ tastes.
#4. Understand The Value Of Old Vs. Outdated
Another point about home renovation and improvement is understanding the difference between old features that add charm and value to the place and elements that are outdated. For example, while you can keep the original fireplace frame, you should make sure that the inside has been upgraded to the latest standards. You will find that this logic applies to period windows too, where the frame can be kept but the glass should be changed for modern double-glazing solutions. Similarly, old tub and sink can be attractive, but they should connect to a modern plumbing system. You get the idea: The internal system and structure of your home should be up to date with standards, while some features, as long as they are in working order, can continue to be used throughout the years.
#5. Don’t Rush It: Climb Each Step At A Time
A lot of homeowners want to climb the property ladder without wasting time, as if they were receiving a surprise promotion in life. In truth, you need to be patient and to start small. With the estate market, it is all about climbing the property ladder one step at a time and starting from the bottom. Your first house will never be the manor house that you are dreaming about. But it doesn’t need to be: Your needs and income when you buy your first property will be different to the ones of someone who lives in a manor house. As long as you upgrade every few years, and keep your income constantly increasing, the ladder will be there for you to climb to the top!
#6. Don’t Just Buy To Live In: Invest In Properties
As you start climbing the ladder, you will soon discover options to use properties as a form of investment. Indeed, you don’t have to buy to move in. You can buy to let too, preferably within a dynamic, urban area that will attract regular tenants. Property investments are a great financial option for investors who are looking for a combination of regular income and the potential for capital growth. Buy-to-let houses can be trusted to an estate agency to manage and run while they generate passive income. You will also find buy-to-let mortgage options to help you establish your property investment in the best possible conditions. In the long term, despite accumulating management fees from a real estate agency, residential buy-to-let properties represent a great investment option.