For millions of working-age adults, getting on the property ladder can be challenging. Over the last few years, inflation rates have increased and are at record highs in some countries. This can make it hard to afford a first home and be able to afford the monthly repayments on your mortgage.
In addition, the emerging cost of living crisis is having an impact on many people’s finances, making it harder to save the money that is needed for a deposit on a first property. However, with time, budgetary planning, and by securing a job with a suitable income it is still possible to get on the property ladder and look to climb it over time.
If you are a homeowner who is looking to progress up the property ladder, this brief guide will be of assistance. Some key points to consider will be discussed which can help you rise the property ladder and eventually own your dream home.
Consider house flipping
In recent times, a key way to make money and get into the property market is by flipping houses. As the name indicates, this is the process of buying a home (often one that needs renovations), undertaking some meaningful upgrades and improvements, and then selling it for a profit.
When done correctly, flipping houses can generate significant levels of money which can then be used to help you climb the property ladder, or eventually keep the home that you have renovated. However, it is important to consider sources of finance when flipping houses.
Some traditional lending institutions may not be ideal for this form of investment, and it can be beneficial to consider private lenders for house flipping. Such lenders may be able to release funds more quickly than banks and may not require as many checks or as much paperwork to be completed. Many private lenders will be able to release the funds for house flipping in a short period, often in as little as ten business days.
However, it is important to consider that the loan will typically be secured on your property, which will be at risk if you do not pay the loan back in the stipulated time.
Remember that location is vital
Whether you plan to flip homes to allow you to climb the property ladder or to simply move up the ladder over time by eventually buying a larger or better home, the location of your property is incredibly important.
Put simply, a home in a desirable area will command a higher price than a similar property that is in a less sought-after location. People typically want to live in a location that is free of crime, has well-kept neighboring properties, and has local amenities, good road links, and access to local public parks.
In addition, it is important to research the specific location of the property you intend to own. Are there any new developments planned in the locality that will make the area more desirable over time? What are the demographics of the local population?
Researching these types of questions will help to give you a clear understanding of whether the area is improving or in decline. Remember that any property is an investment, and ideally its value should rise over time, especially if the location grows more desirable and becomes recognized as an excellent place to live.
If you benefit from having a property in a desirable location, its rising value will help you to afford a more expensive and luxurious home when you come to sell your current property.
