Many people will have a goal to get onto the property ladder at some point in their lives. It can be one of those things that you think is distant in the future, or you may be thinking about it now. There are, of course, steps you need to take initially when it comes to getting on the property ladder. For starters, you need to build up a deposit, which can take a fair bit of times given that lenders require a decent lump sum to be put down. You then need to be able to obtain a mortgage, which could be that you need to think about your credit score, and being in employment so that you can guarantee an income that will be able to pay for the mortgage.
There are so many hurdles to overcome initially, but once you get yourself into a position where you can start to consider buying a property, the next decision to make might be which way to go. There are few different options you can consider. So here they with a few advantages and disadvantages to help you be more informed.
Buying a new home
The first option you could consider would be a brand new home. There are many developments that are coming up in different areas all of the time, as the need for housing increases. Builders like Redrow will offer you a few different styles of house, with different amounts of bedrooms and reception rooms. They might all be a different layout with a different size plot. Here are some of the advantages and disadvantages of buying a brand new home.
There are some big advantages to buying a brand new house. There is the obvious reason which is that it is completely brand new. Nobody has lived in it before and therefore you are buying a house that is new and low maintenance. Buying a pilot earlier enough may enable you to choose your kitchen fixtures and bathroom fittings, as well as tiles and carpet
There are, however, a few disadvantages to new houses. There is the issue of the size of the house. Historically, older houses have a little more space. A new could may not necessarily give you any character or features, as everything tends to be modern and streamlined. Sometimes the plot sizes are also small, as a new housing estate tends to have more houses on to maximize the
Buying an older home
There will always be availability of houses that are older. Whether that is a year old or hundreds of years old, and property sites will have listing after listing of potential properties for you to view. An older house could be anything. You can still get them looking modern with modern fixtures, or you can choose older buildings that have original features and character. There are advantages and disadvantages so here are some of them to consider.
When it comes to buying an older house, the main advantage would be that you can put your own spin on the decor. The chances are, it has been decorated not to your tastes, so this gives you the chance to make some changes exactly how you would like. The rooms tend to be bigger, and with some older houses you might also get to take advantage of larger garden spaces. Lastly, an olde house may give you the scope to extend, adding on more living space or bedrooms.
Sometimes with olde properties, an issue that you might have is likely to be the added cost. There will be a cost to decorate, a cost to extend, and a cost for repairs that might need to take place. Most of the time these costs will be able to be made back and more when it comes to an increased value, but initially you need to money there ready in order to take on the work.
Buying properties to rent out
You may already have a house that you are happy to live in, or perhaps you just want to make some wise investments, and this is when people choose to put their money into property and rent them out. At the moment, the rental market is booming because people are struggling to afford to buy a house themselves. So it could be very lucrative. Here are some of the advantages and disadvantages of doing it.
One of the biggest advantages for buying or investing in property to rent out is that not only do you get the long term investment and payback, but you can also earn an income monthly on the rent. This can be a great way to subsidise your
There are, however, a few disadvantages to buying. A property to rent out. The first one being dealing with tenants. You normally have two options. You can choose to pay a fee and have an agency handle the tenants, or you can choose to do it yourself. Either way you do have to deal with them at some point as you are putting trust in the hope that they take care of the property while it is in their care. Sometimes this isn’t the case. This brings us onto the next disadvantage which is the maintenance. You have to maintain the property while people are living in it, which means replacing things that break or doing repairs. But you also need to get it back to a renting standard when they leave.
Buying a holiday home
Another great option to consider is buying abroad. A holiday home can be a great solution. You get the benefits of buying a property, but you also get to experience a vacation every time you go. Doing this can give you some big advantages and disadvantages though.
The obvious advantage has to be being able to holiday there. Having a place abroad means you only need to fork out for flights, which can give you cheap holidays in the future. A great additional advantage would be that when you don’t use it, you could rent it out so that others could enjoy it and you can make a decent income. Letting out for weeks at a time can be more profitable than renting out for a longer period in the country you live in.
There are, however, disadvantages and worries about buying in a different country. One of them has to be dealing with a foreign agency, government and bank for your mortgage. Often there are different laws that you might not be aware of, and this is when you could get heavily penalised if you don’t have the right advice. There is also the worry that when people are renting it off you, that they don’t take care of it and things happen while you are not there. Buying abroad means that there is an element of risk, and you are not entirely well informed about the housing market. So it may not always go in your favour.
Buying and selling to make a profit
Finally, the last thing to consider when it comes to buying property is the buying and selling option where you move up the ladder. It tends to be you start off with a House that needs work and attention, and then you do that work and invest in the property to sell it on and then you use the profits out if it for the next one. Many people are doing this, either on
The big advantage of this option is the opportunity to make a decent amount of money when you sell a house that you have invested in. Doing cosmetic changes, extensions or improvements may cost you initially, but can add significant value on to a house price, and this is where you can get rewarded. Further to that, it can be a quick way to move up the ladder. Starting off with a small house, and then being able to be in a position where you move on to something bigger using the money that was made.
There will always be disadvantages to things like this, and one of them is the upheaval and living with the mess if you choose to do it that way. It isn’t easy to get work done on your home anyway, so living with can be frustrating. You might also need to take into account the costs of doing the work, and the cost of keeping the house while you do it and move on to the next. Moving is never going to be a stress free thing, so you do need to consider that.
Let’s hope this has made you aware of some of the things that could be an option to get you on the property ladder.