Want to climb the property ladder successfully? Property guru Andrew Winter shares his expert advice.
It seems simple, doesn't it? Buy a house, do it up and 'Hey Presto!' - it's worth more than you bought it for. And you can sell it or borrow against the increased valu.e
But for some people it doesn’t always work out and they end up owing more than the house is worth.It’s in negative equity, and you either have to sell at a loss or stay put.
I say this time and time again - before you consider buying a house – DO YOUR RESEARCH. It’s probably the biggest investment you’ll ever make.
Think about what would happen if you lost your job and had to sell quickly.
Is your property in an area with a speedy sales turnover or do homes languish on the market for months?
Study the real estate lists before you buy and monitor which kind of homes sell more quickly.
The key thing, especially is you're buying your first home, is to have a back-up plan. Here is a great one:
- Make sure the rental value of any home you buy will cover the mortgage and leave a little left over for maintenance
- If prices in your area are low it means you aren’t forced into a sale - you can walk away and rent somewhere else until things pick up. It may be 5 years or so - but rarely longer than that.
Now, I know YOU bought your house – but who else would?
- Are potential buyers willing to make the same compromises on things like location, space and character you did just to get a foot on the property ladder?
- Think about kind of buyer you are expecting to attract when it comes time to sell. Its no good aiming at the family buyer if your property has dangerous steps in the garden.
Make sure your house reflects the right demographic of buyers in the area.
In short, you should only buy a property you like and can afford, has rental potential and that you have researched thoroughly.
ONE WITH RENTAL POTENTIAL AND ONE YOU HAVE RESEARCHED THOROUGHLY.