Getting onto the property ladder is the first step towards building a potential asset that will pay off dividends later on in life. It’s very important for a good, healthy financial future and so even if you do not intend to live in the property, it is still one of the healthiest and risk free investments that you can make. Today we are going to go through our top tips for getting onto the property ladder.
1.) Find out what you can afford
Using the amount you can afford to put towards a property in deposit and calculating what you can borrow will give you a good ruler by which to measure the investment you are making. As a general rule, banks will lend four times the amount of your annual salary, and this figure can fluctuate according to the level of perceived risk in lending an amount of money to you. Perceived risk is judged according to each lender and so there is no surefire way to predict this, but giving yourself a budget of around 3-5% less than what you can afford will give you more of an idea of what is realistic for you in terms of property investment. Finding out what you can afford will narrow down your property search, so that you don’t waste time in looking at properties you cannot buy.
2.) Think out of the box
When it comes to investing in property it is important to have the right perspective. You are looking for your first property investment and not your ultimate dream home (that can come later!) Whatever type of property you invest in, whether it is for renting to tenants, to sell later or to live in â€“ it is highly likely to accrue value between the time that you buy and the time that you sell, so there really is a very low chance of making a terrible decision/ If it is your intention to get onto the property ladder, then buying the best for your pound should be your main priority and this may mean looking in a different area to the one you imagined, buying a different size or style of home to the one you imagined or something else. Staying open to ideas and opportunities is of utmost important when stepping into the investment of a property.
3.) Prepare to be rejected
Like job applications, buying properties are subject to a system by which a person or an agent can agree or disagree to the idea of selling a property to you. It may be that you were outbid, or that you bid too low, or that they are waiting for their holiday home in Spain to be ready before they sell and they are just not ready: whatever it is, fining yourself in the situation of making an offer does not mean that you automatically get to buy the home. Preparing for this, and understanding this before you start will help you in the long run so that you can take such setbacks in your stride.