Move Up The Housing Ladder In 3 Simple Steps
If your brood is getting larger or you need to relocate due to your job or for family reasons, the chances are that you will need to move house. You don’t want to make a bad financial move when it comes to property, Buy the wrong house, and you could find yourself reminiscing and missing your current pad. Moving home should be fun but can often be stressful. You need to ensure that you identify what it is you want from a new pad, and you need to be willing to compromise. Moving up the housing ladder can help you to release equity from your current home and progress to a larger and more family-friendly dwelling. Take a look at how you can move up the housing ladder successfully.
Finances
It’s crucial that your financial ducks are all in a row. You need to demonstrate to any home loan lender that you are a responsible borrower as the chances are you may be able to extend the amount you are borrowing, especially if you are moving because you have got a job promotion. Take a look at the sorts of mortgage rates available to you from a reputable firm like Altrua. Here, you can check out the sort of rate you could obtain based on the loan to value ratio you can achieve. The more deposit you can put down on a house, the less interest you will pay on the capital that you borrow.
To prove your borrowing credentials, don’t venture into your overdraft for at least three months prior to your move and forget about buying big-ticket items. You need to be the epitome of modest spending.
Location
When you move to a new location, it can be challenging to find the best areas in which to buy. You may have heard good things about ‘up and coming’ areas, but this is often a euphemism for less pleasant regions. Instead, go for an area that is well established, with amenities close by, great transport links, awesome schools, and a low crime rate. Drive to different areas at different times of the day to check out the feel and vibe of a place. You might even get out of your car and knock on some doors to ask people’s opinions of a street if you’re feeling bold enough. Consider what you want from a place and let this dictate the location you choose.
Property Forecasting
You want to purchase a property that is a sound financial investment. This may not be your forever home, so you need to be sure that when you move in five years’ time, you have built up equity with your home. Check out the property price history of the area you are looking at. If they have been increasing for the previous five years, you will be onto a safe bet for future equity. Releasing this can then help fund your dream home purchase at a later date, or it can simply be a bonus knowing that you have a valuable asset ready for your twilight years.
Follow this guide and you will soon be scaling the property ladder and making financially astute decisions.
