I’m Rich and I welcome you on my personal space on the Internet. I created this blog with a single purpose – to inspire you to take charge of your money and help you become a financially successful and independent person.
If you’re thinking of getting on the property ladder, there is a lot to think about. Of course, property is one of the best investments that you can make, but you have to ensure that you’re doing it right, or you could end up encountering a lot of financial issues. However, if you go about it in the right way, you’ll have a great profit, and the home you’ve always dreamed of! If you want to know more about getting your foot on the property ladder, whilst ticking all the boxes financially, read on for ten useful tips!
Tip #1: Start Saving ASAP
Sure, there is a lot of help out there when it comes to purchasing your dream home, and you should be able to secure a mortgage and some other loans to help you to get on the property ladder. However, purchasing a home (and moving into it) presents costs around every corner, and you will need to know that you are financially secure enough to pay some of them off as they arise. The other upside to this is that your debt will be significantly lower as a result, and you won’t have that dark cloud hanging over you if you’re sure that you won’t have to take out yet another loan to cover your back. Save yourself some hassle, and start saving now.
Tip #2: Think Long-Term
If you’re investing in property as a 20-something year old, even if you are doing so with your partner, you can be inclined to be pretty short-sighted about it. What you want right now (which is probably a flat in the centre of the city) is not going to serve you well in five years or so when you decide that you want to start a family. We know, it can be hard to think about your life in this way, especially when you don’t know what your future holds, but you will really be thanking yourself in the future when you don’t have to move out of your home because it simply doesn’t serve your needs anymore. This will be expensive, and time-consuming.
Tip #3: Don’t Invest in the Wrong Area
One of the biggest mistakes that you can make as somebody investing in property is to invest in the wrong area. By ‘wrong’ we simply mean somewhere that is at its financial peak now, and as such is a very expensive area to buy property in in the current market. For example, if you’re living in a city, and property prices vary based upon which area is popular at the moment, your property is going to lose a lot of value when another area is in the spotlight. The best thing that you can do is get in touch with somebody who will tell you what the best condos for sale in 2019 are, and where your money would be well-spent. You don’t want to come out with a loss.
Tip #4: Arrange Your Budget Properly
As we’ve already mentioned, property buying is one of those things that is always presenting surprise costs to people. However, it doesn’t have to be like this, and you can ensure that you’re ready for everything that is on the horizon. For example, you’re going to need to pay for moving costs, legal fees, mortgage fees, the costs when you first start living in your home, the deposit, and a few other things depending upon where it is that you’re going to be living. You need to sit down and think about every single cost that you’re going to have to pay, and account for them. Will you use loans, or your own savings? Work out the best options, and make sure you’ve planned everything.
Tip #5: Pick a Property That Needs Work
If you purchase a property that is kitted out with the latest kitchen and the perfect decor, and there is nothing that you can do to improve the space, you are never going to make a profit from it. This is OK for people who don’t want to bother with DIY or getting more back from an investment, but if you want to have a bit more money for your next home (if the time ever comes around) you need to pick a property with a few flaws. Sure, the house shouldn’t be falling down, but it if it requires a bit of TLC, you’ll be onto a winner. It won’t cost you that much to do the work, but the return will be huge, so look into properties that need some work doing to them.
Tip #6: Make the Most of House Viewings
To save yourself some huge costs in the future, you need to make sure that you look at everything you possibly can during house viewings. If you think that you’ve found that perfect property, and you want to go and view it for a second time, check everything! From cracks on the walls to the water pressure in the shower, you need to know that everything is as it should be. Don’t be afraid to take as many pictures as you can, as you’ll be able to buy furniture depending on the layout and the specifics of the property, before you move in. Take measurements, take pictures, and don’t be afraid to ask questions. In fact, ask as many as you can.
Tip #7: Be Practical
OK, we all want to have a freestanding bath, and a perfect kitchen, and… the list goes on, but don’t be drawn into a property just because it has these things. Think practically about the space, and try to visualize what you could do with it. Don’t be drawn in by the particulars of the decor, as you can always create this look yourself elsewhere, for a fraction of the cost. Focus on the things that you can’t change, and think about whether they would work for you. It is easy to change the other things, so don’t get caught up in that bathroom, as much as we all have the inclination to do so. Think about the windows, the light, and the space!
Tip #8: Spend Some Time in the Neighborhood
If you’re moving to a new neighborhood, you need to spend a fair amount of time there in order to see whether it is really for you. Needless to say, it will be costly if you decide that it just isn’t what you imagined, so stay in a hotel nearby, and see how you feel about the place during the day, and at night. It could be beautiful during the day, but you may feel on edge around there at night, and this won’t be a healthy environment to live in if you’re coming home late and don’t feel too comfortable. To save yourself all of the costs associated with moving again, ensure that you know the area like the back of your hand. Know where the schools, stores, and transport links are, too.
Tip #9: Shop Second-Hand
OK, as any money-savvy person will tell you, shopping at thrift stores, at auction, on sites such as eBay, and even checking out Freecycle, will really help you to save the cash when you first move into your home. You will change your furniture up eventually, when you have the cash to do so, but right now the main concern is that you actually have some furniture, and buying from new can be an expensive game. The quality of the items will still be great, but they won’t cost the earth like they would if they were store bought. You can get some unique pieces this way too (especially if you’re into vintage furniture) so see what bargains are out there in the world of second-hand.
Tip #10: Change Your Bills Over
When you move into your new, dream home, you will already have suppliers for water, gas and electricity. You can save yourself some cash pretty much immediately by looking out for better suppliers, that won’t cost you as much each month. Don’t just think that you don’t have a choice over how much your bills are, as there are many companies out there that will probably offer you a better deal. The same applies for Wifi, so don’t just get the first one that you find on the market. Try to haggle with the companies (particularly Wifi providers) and you could be well on your way to saving a lot of money for years to come.
If you’re a first time buyer, looking to get out there into the property market, there are many things that you can do to save yourself a bit of cash. Of course, you need to ensure that your new home is right for you, and you’ll just get a feeling about this, but make sure that you go with your head as well as your heart, or you could end up living to regret the decisions that you have made. Follow these simple tips, and you’ll be well on your way to having the keys for your dream home, without paying out more than you need to!