Much has been written in blog format and angry social media posts about how millennials don’t have the same opportunities as their parents before them. This is true up to a point. Millennials will find it more difficult to enter the Property Ladder than their parents for example, as rising house prices and limited availability means that truly wise financial decisions need to be made from a young age in order to access the same opportunities for a home. However, that doesn’t mean it’s impossible. With the right investments and the right careful, practical planning, you too can get on the property ladder and work your way to a property which you adore.
Remember, just because you’re not on the property ladder in your early, mid or even late twenties doesn’t mean you’re at risk of never getting there. These things are substantial and take time. Purchasing a beautiful and complete penthouse might come around the corner sooner than you think. It certainly will if you follow the practical advice laid out in this article.
Without further ado:
Of course, getting on the property ladder takes money. This is why it’s so important to build a structured career. Be gung-ho about your promotion and raising your standard within the company. If you have that startup idea which simply needs to be executed well, what’s stopping you? Keep your long term goals in mind when it comes to getting on the property ladder, and you’re sure to be part of the way to acquiring the home you want in the future. In April, a study was conducted which said that in the UK, 67% of Millennials believe they will be on the property market within the next five years. This, of course, was met with widespread mocking and condemnation from journalistic establishments who felt it necessary to list all of the reasons as to why they couldn’t do that, and why it was an ephemeral dream best left at the door.
However, this is exactly the sort of attitude which turns people off from attempting to begin in the first place. Treat this as you would any other form of large contributive investment. It will take careful planning and forethought to meet the load, but there’s zero reason as to why you should undertake that task. If owning a townhouse abroad or a beautiful rural family home is your life dream, then orient yourself around that aim, and things will work well. One of the best tidbits of advice you can get in this regard is to truly market your skills. The criticism is right to say you can’t expect to comfortably sit in the same position at your job for years and then smoothly enter the property ladder. Now more than ever you will need to earn and justify your place on the mortgaging affordability list, but all that takes is time, energy and investment in your career.
Despite reading literature on the internet dictating how difficult entering the property market is, you might feel it’s not worth the effort. But notice how that adjective used was ‘difficult,’ and not ‘impossible’. With a few correctly placed sacrifices, saving money for your future home could be wise. That might mean missing a vacation and exploring your local environment once every three years and placing that money in a high-interest savings account which can be pulled out for the deposit of a house. Sacrificing might also mean purchasing with friends, taking the opportunity to help each other out with the financial opening you both have. For most people, entering with a spouse might help you mitigate some of the worries of losing out on your investment through a social difficulty.
Be Prepared To Pay More Than You Think
Remember, purchasing a home isn’t the same as entering a rented property. It’s not always guaranteed that the property will be furnished or even have room for your current furnishings. Even if it does and you needn’t pay out for furniture, transporting your current furniture to the new place can cost you. Research all of the costs that might crop up when you’re unaware and be prepared to have them surprise you. Energy tariffs, insurance costs as well as revising the security of the property will all take their toll. This again compounds our advice about saving early. You never quite know where you’ll need to apply your budget.
Finding the right home loan is a matter of shrewd and careful planning. If you have a large deposit the moment, you desire to enter the property market, securing a loan will be much easier for you. Check around for the smaller interest rates around you, as well as if any government subsidies are present for someone in your position. It’s usually in your government’s interest to have a large citizenship of taxpaying people happily secure in homes, as it keeps the economy moving forward. Depending on your job type, especially if working in the military or healthcare professions, you might find subsidies or reduced loan rates by entering through these schemes. You’ll only know if you try. Consider calling your local housing authority or citizen’s contact point to find out what exists.
As with most things in life, starting out small and making consistent, repeated progress could be your best friend in this instance. There’s nothing telling you that you should be able to get the house you most want within a matter of months of entering the job market. If you truly want to enter the property market, purchasing a small flat, investing money into doing it up and renting it or selling it can offer you at the very least profit, at the most sustainable, real income which can pay off your investment within a period of years. As you progress, you will be able to find a larger property, work your same magic and potentially repeat your success.
It’s for this reason that the property ladder is named the property ladder. Wise people climb it one rung at a time. This might come with unexpected benefits. Before you know it, if operating some form of rental scheme, you may even justify your profits enough to quit your day job and make property development a career. Not bad for a small hobby you began in order to achieve a home yourself.
If you want to get on the property ladder sooner rather than later, receiving the initial investing money from your parents or other family member might rob you of your independence, but it wouldn’t morally corrupt you in any way. In fact, over 25% of people in the US admit to having some form of financial assistance from their parents well into their 20’s. If you have the salary to pay them back , this might help you get through the initial loan securing stage with a little more rapidity. This can help you overcome the time it takes to raise a deposit to place down on a property, effectively giving you two loans, one with the terms completely negotiable with your elders. There are certainly more difficult methods of getting on the property ladder today. Just be sure to pay the favor forward if your children ever express an interest to get on the property ladder in the future.
These tips aren’t here to ignore the fact that getting on the property ladder is harder than it has been in recent generations. However, with the right attitude, there’s no reason why you yourself can’t work to overcome the initial hurdles.
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