Thursday, June 22, 2017

5 Tips To Fast Track To The Top Of The Property Ladder

Getting a foot on the property ladder is a feat that most young people can no longer manage. Not only are you contending with finding a deposit for the house of your dreams, but you have to find the money for solicitor’s fees and stamp duties and moving costs – the cost list can feel a little endless!

Owning your first home is one thing, ascending the property ladder is a whole other feat. Trying to climb up from your starter home to luxury real estate is something that most homeowners can only dream about. With house prices rising and interest rates being low, the market has been quite bad for first time buyers. However, it’s not much easier for those hoping to climb another rung or two up the ladder. There are ways, though, that you can climb the property ladder quickly and start building your own property empire:

  • Deposit. As with any home, you will need a deposit down so you have to step up your working game and get one set up. However, if you have an inheritance that you can invest in the deposit of the next house, you should absolutely pour that money into it. Saving for a deposit while already paying for a mortgage isn’t easy, but you managed to do it once before while renting so you can do it again!
  • Overpay. Check out the conditions on your mortgage – if you are able to add more to your monthly repayments and pay it off faster, this should be an option for you. The more you overpay into your current mortgage, the more equity you will have when you sell. If you’re unable to do an overpay without penalties, then add the money you’d overpay with to a savings account with a good interest rate instead.
  • Cuts. Making cuts in your day to day living expenses – such as swapping the car for a bike to work – can help you go a long way to saving a house deposit. The costs of buying and selling houses do mount up, and if you can cut down on those costs by doing most of the legwork yourself (such as advertising etc) then you can help yourself when it comes to the sale.
  • Relocate. There is an obvious price difference between where you live now and say, further north of your area. You can save on costs by buying in a cheaper area – this means a lower deposit and less in terms of fees. You could compare the costs of houses in your current town with houses in another area, and go for the cheaper option to be able to climb the ladder faster.
  • Wherever you decide to go to expand your property portfolio, the goal is always to upgrade. Look for the best deals you can in different areas so that you can better your current situation. Of course, if you need to downgrade your property as you don’t need so many bedrooms anymore, that’s a very different situation!

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