If you are unfamiliar with what the property ladder is then please let me explain to you here in simple terms. The property ladder describes the many different stages of owning property and the first rung on the ladder is seen as the first home that you will buy. As you sell this home and buy another then you start to move up the property ladder and they usually increase in value as you do. Getting on the first rung of the property ladder can be incredibly difficult for people who are buying a property for the first time and there are quite a few barriers in front of you that makes getting your first home incredibly difficult.
However, you can continue down the road that you are currently on because you are paying rent for a property that you will never own. You are effectively paying the mortgage of someone else when you could be buying your own property yourself. If this has lit a fire under you and you would like to find out more, have a look here at ascotmortgages.co.uk to get an idea of what is currently available and what you can afford. By purchasing a home, you can actually save yourself money in most cases and it’s refreshing to know that the property that you are living in belongs to you. If you still have to be sold on the benefits of getting on the property ladder when you are young then here are some of them.
- It saves you money – Many people wrongfully assume that renting a property is much cheaper to do than purchasing a property outright. It can be quite scary at first when you see the price tag that is on any property but as long as you can find a way to come up with a deposit then it is definitely cheaper buying a property then continuing to rent. You need to think of it more over the long term rather than the short term and once you can get past that hurdle, you will be able to see the longer term savings.
- You are building equity – It is important to try to build equity throughout your life and if you keep paying rent over the next 5 to 10 years then you might as well take your money and just throw it in all. You need to remember that you have no say in what goes on in this rental property and that includes the owner selling it out from under you and leaving you to find alternative accommodation. The money that you pay into your mortgage isn’t throwing money down the drain because it is a representation of the increased ownership that you have for your new property.
Buying your own home is a relatively safe investment because property continues to grow and it is expected to do so as we run out of space. Populations are rising all the time and finding homes is proving to be more difficult than before.