Getting On The Property Ladder With Sound Financial Sense

Getting on the property ladder has been notoriously difficult in recent years, or so many people would have you believe. Fortunately, as ever, the housing market is simply not as volatile as other markets, and since the financial crash in 2008, efforts to keep property investments stable have increased tenfold. For the average person looking to pinch the pennies and potentially invest those wise savings in something tangible, investing in property can sometimes seem like a frivolous and useless pursuit.

Fortunately, it isn’t. There are many ways to the housing market, even if you’re not earning like a high flying inner city executive. This article will aim to dispel the most insidious myths about the housing market and will hopefully give you more of a grounding to take a step out towards your dream, or at least research and try to educate yourself further. If this article succeeds, it will give you a great head start to understanding your position, so read on to see if it hits or misses the mark. In it, we’ll dispel some of the commonly found myths today, which are:

Limited To Average Incomes

Simply because you aren’t earning the same amount as someone well established in their industry, it doesn’t mean that the housing market is completely blocked off to you. Sure, it might mean that those premium penthouse developments are out of reach (for now.) Still, in many places, shared ownership can be a viable option, and many run well under the average income for the select major cities in the United Kingdom. In a shared ownership program, you will pay between 25% and 75% of the property, which means that you need less of a sizeable mortgage in order to acquire it.

Then, housing association rent on top of this will add up to a round figure to stake your full claim on the property and live their happily. You pay up to 3% of the share of the property value for this benefit. This might sound like an unhappy compounding of costs, but it can turn out much cheaper than a mortgage. This is a great scheme. What other purchases can you acquire the whole thing while only paying for some upfront? If you’re a budding or established property developer, services like Belgravia Property Finance can also educate you on the best deals for the project or goal you truly have in mind.

Debt

Debt can be a nasty, overbearing beast, but that doesn’t mean you need to overly worry about it. Sometimes, if you have enough of a well-paying job to overcome your debt payments and living costs each month, you will be able to acquire a mortgage from select firms. They usually just want to see how often or long ago the debt has accumulated, and if these numbers are relatively low, they will be more inclined to take on your application.

Sense

It’s important to state that simply because there are many mortgages out there just waiting for your beck and call, all offering the best terms despite your financial circumstances, you should still be humble about your first purchase. Getting on the property ladder for development and renovation should start out like any other job –  begin small and slowly accrue profits as you increase your competency and purchasing power. This way, you will never be overladen with debt and will have your cash flow incoming as soon and reliably as possible.

These tips will help you acquire the best foot on the property ladder you can without bleeding your bank account dry.

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