House affordability is at an all time low in many countries, the big demographic struggling to get on the property ladder are the young newlyweds. If you’re disciplined with your finances you’ll be able to get on the property ladder but this takes time. Here are a couple of tips you should think about when getting on the property ladder.
Structure your earnings
It’s very important to ensure that all your savings are put away in a savings account that will generate a degree of interest. You will need to ensure that your hard earned cash is earning as much as it possibly can to give yourself the best chance of getting this elusive mortgage.
2 incomes are better than 1.
If you both hold full time jobs the chances of being accepted increase significantly as mortgage lenders see a double income as less risk if one or the other is made redundant and is unable to pay the bills.
Consider a buying in a developing area
Typically buying in the trendiest neighbourhoods in any city will be in theory a great idea, however it will also be fairly costly. To get on the property ladder I would consider investing in an up and coming area where the cost of property is at the moment lower than what is expected it will be in the future. Areas with proposed new transport links, highways or even a big shopping centre will add value to your property.
Buy next to a big development
Although the next big development area is in theory a great investment, you are likely to pay over the odds on the property based on the sheer interest in the area. By purchasing in the suburb next door you’ll be banking on the increase popularity on the area and the growth that that area will attract in the long term.
Children will count against you (Unfortunately)
Strange as this might be but banks or mortgage lending institutions see children (or dependants as they call them) as an added cost to getting accepted. This is because they anticipate that there are extra expenses when it comes to looking after a child. One way to make the Children issue an non-issue is to use a mortgage broker who will fight your corner.
Save as much as you can
Finally, this may sound very obvious but in the months and years before finally getting on the property ladder try to save as much as you can, the more you have for a deposit the more likely you can move into your dream home on the first big property buy!