Getting onto the property ladder is a huge feat in anyone’s life. Taken for granted several generations ago, being able to buy your own home is a mark of success and shows an upward trajectory of your life. But, getting a foot on the ladder can sometimes be where you remain for a long time. While many are yet to achieve it, those who have get little advice for what they should do next. So, what can you do when you’re stuck on the housing ladder?
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Downsize and Rent Out
One of the ways in which people are able to progress through the housing market is by renovating their current home to a high standard, taking out a second mortgage, and then renting out this house, while living in a second. This strategy is best for those who would see long-term gain over short-term comfort, and could cope with living in a downsized property while they build their portfolio.
The best advice for doing this is ensuring that both homes are somewhere you’d like to live, not just an investment to bide time with. The extra income from the first home will allow you to then progress past it and up the ladder. Seeking free mortgage advice from brokers like Trussle can help you on the way to moving up the property ladder.
Self-Build and Flip
Another strategy for moving up the housing ladder is to take on fixer-upper projects. This strategy would be great for those who relish a challenge and understand the hard work that would need to be taken when building and renovating homes. You can find some for relatively cheap prices, as long as you have enough contacts in the construction industry to balance out the cost of renovations.
Flipping this house could then lead you to be able to invest more in other properties. Each property you flip would, in turn, give you more money to then combine with your current actual home in order to move further up the ladder. This would be best for those with some disposable income in order to buy the fixer-upper in the first place.
Pair Up and Upgrade
Another strategy is to combine the value of two separate houses into one larger one. Granted, this one may be best suited for those who live alone and want to move in together romantically, but friends have also been known to combine mortgages together. Usually trading in two houses for one larger one means that you are able to upgrade the area too, even if the house isn’t necessarily a huge one. An upgrade in the area can be considered the next step in on the housing ladder, especially if your first home is merely a starter home as, at the time, you could most likely only afford somewhere you might not necessarily want to live.
It’s definitely not easy to move up the housing ladder. But there are ways to work the system so that you can begin your progression. Others are content with where they are and many never leave the first home they buy. But, if you do want to move upwards, consider these three possible strategies.