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While homeownership is an essential factor of the economy, only 56% of all housing units in the USA – including trailers and apartments – are owned by the people who live in them. In other words, this means that almost half of housing units are on the letting market and welcome tenants who can’t yet afford to buy their home. According to https://fivethirtyeight.com, only one-third of the owner-occupied units have no mortgage left to pay.
In other words, two-thirds of owner-occupied homes still have an outstanding debt or mortgage. For a lot of homeowners, applying for a mortgage as their purchase the property is the first step on the property ladder. But how do you ensure that you don’t fall off the ladder and pay off your mortgage debts?
#1. The secrets of saving money
The first rule of stepping onto the property ladder is to ensure that you’ve saved enough money as a tenant to afford your first home. Yes, you’ve guessed it right: it’s all about SAVING. 21.3 million renters spent over 30% of their income on rent, which can make it difficult to save wisely. Therefore it’s important to focus on budgeting apps and freelancing side income strategies to maintain your saving plan.
#2. Getting to know the market
Saving money is only one part of the homeownership equation. You also need to develop an in-depth knowledge of the real estate market. This starts by establishing a trust relationship with your property agent, as you need someone who understands your needs and can help you to find the best home for you. Additionally, you will be able to discuss compromises with your agent concerning locations, prices and features. You’ll need to know these before you can apply for the most-relevant mortgage for your situation. One last tip: Don’t wait until the last minute to get in touch with mortgage advisors!
#3. Protecting your home sweet home
So, you’ve finally found your dream home and you’re ready to move in? Congratulations! However, don’t make the mistake of thinking that you’ve got nothing left to worry about. On the contrary, you need to consider the protection of your investment with a home insurance. Make sure to read the small prints on the contract, as you might need to take additional insurances against natural disasters, fire or flooding. According to http://andrewknox.com/, you never know when you need an experienced claim advisor to recover your investment after devastating damages. So make sure to protect your home.
#4. Climbing up the property ladder
Protecting your investment and looking after your mortgage repayment are two essential factors of maintaining your position on the property ladder. What if you want to improve your situation? Moving up the property ladder is a tenuous job that requires patient research for the best loans and the most profitable market fluctuations. You need to add value to your first home to make a significant profit towards the purchase of a bigger second home. Finally, invest in buy-to-let houses to generate passive income.
There’s no miracle about the property ladder. You need acute financial and real estate knowledge to maneuver yourself on top of it. But most importantly, you need to know how to save money if you ever want to get on the property ladder in the first place!