For many people owning land or property is regarded as the natural pathway to financial security and wealth. It is an asset that appreciates rather than depreciates and it is an asset that once purchased, starts to solve a problem for you. In short, if you rent you are solving somebody else’s problem and helping somebody else to get rich. If you buy, every mortgage repayment that you make is helping you and your own account, it is driving you slowly towards a brighter future. But how do you get onto the property ladder? It is not always easy. But where there is a will there is usually a way. Here are a few options and angles that you might want to think about.
Be creative
People love to use the phrase property ladder and it is a very descriptive term, but before you get caught up with it, know that there are lots of different types of the ladder. In the same way that there are step-ladders and folding ladders and extension ladders etc. So too are there lots of different ways to view the property ladder. It could be a flay or a house or just a piece of land. Shop around and think creatively. Perhaps the option of a small plot and a do-it-yourself kit homes is the way to go. Or container-based living. The key is, you need to find something that works, which is cost-effective, which puts a roof over your head and which stops you paying rent to somebody else.
Shop around
For most people looking to enter the property market, they are going to need finance. This involves visiting banks and applying for mortgages. Be smart here, don’t just go to the bank that holds your existing account – go to other banks as well. Banks make their money out of loaning money and if you qualify for a bond they will be keen to get you on board as a client. So, play the one off against the other as you push for the best interest rate. Remember that the lower the interest rate the sooner you will start to pay off the capital amount.
Play to your skills
If you have skills in the property space, then recognise this and look to use them. You might be a lawyer who can do the conveyancing. Or an architect or maybe you are just really good at DIY. If this last example applies to you then look to buy a fixer-upper house that you can work on. If you don’t know which end of a screwdriver to hold then maybe don’t go that route. The key here is to play to your strengths to deliver the best outcome.
The worst house on the street
As a rule, the price of property moves steadily upwards. But to enhance this and to get the best value possible from your property, try to find the worst house on the best street. If you can do that, it means that once you have spruced the place up that you will have the best house on the best street, and in turn, a really valuable asset.
