The Property Ladder: You Don’t Have To Feel Disheartened

Most would-be homeowners are keenly aware that the property market is much more expensive than it used to be. The economy seems to have never fully recovered from the 2008 mortgage crisis, where an international aftershock of the property market crumbling became household news, and, unfortunately, a household influence.

For this reason, it’s not hard for new millennials and even Gen Z would-be homeowners to feel as though their future is solely consigned to renting. It’s not hard to feel disheartened by this, especially as rising prices an impenetrable first step seem to offer an uncertain future.

But you don’t have to feel disheartened by the current-day property ladder, even though it may be tougher than it used to be. In this post, we’ll discuss a few measures or insights you can take in order to find an affordable path forward. Note that these are just suggestions, and they may or may not apply to your position, but we hope you can glean some value from them regardless:

The Property Ladder Isn’t Fixed

It’s easy to think of the property ladder as a singular path, but it isn’t, and it won’t be from area to area, country to country. For example, you might not be able to afford a house now, but perhaps owning an apartment, investing some thousands in its renovation over time, and then selling it off for a property later down the line is worthwhile for you.

After all, it may be that your small family unit is quite happy in a smaller area for now, and it’s only when your first child grows that you’ll be seeking a larger space, such as more than one bedroom. This isn’t to say you always have to start small or with a fixer-upper, but if we’re looking for any onboarding point, choosing that may be simpler (and more empowering), than renting and paying off the mortgage of another.

Alternative Pathways

Not all alternative pathways to home ownership will apply to you, but if they’re possible, then that’s a potential chance you could look to. For example, it may be that a friend or relative selling their home might be more interested in your own offer if they’re selling up, potentially allowing a more favorable asking price or a prolonged agreement that you can pay them upfront for a certain figure and continue paying them to completion of that deal over time.

Mutual ownership between friends and relatives are becoming more and more common, such as parents and adult children who need a place to stay and agree to pool their resources for shared ownership where necessary. More and more in the West we’re seeing standards that have existed in Asia and beyond for centuries – living with family members doesn’t have to be considered shameful or a sign of arrested development, in many cases it makes perfect sense and can bond the family unit. If that sounds worthwhile to you, then it’s a good step forward.

Chip Away Where You Can

Now, it might not be that you can afford anything right now, but that doesn’t mean saving isn’t a wise strategy. Using round-up budgeting apps, saving up for specific and incremental homeowning goals (like enough for a deposit even if you wouldn’t be accepted for a given mortgage right now), looking into the area for good market research, and even looking into financing opportunities can all be helpful strategies.
This way, you remain aware of what you’re looking for, can prioritize the goals most important to you, and before long implement a dedicated outcome worth appreciating. Here you can even consider additional routes, such as learning how does prefab financing work, or understanding how a teacher’s or enlisted personnel mortgage subsidy works, potentially helping you leverage a career path to make your step onto the property ladder more affordable.

You can also decide exactly how you might want to cement your position on the property ladder, because getting on it at any cost is not always the best outcome. Maybe you’re very interested in house flipping, or perhaps you just want the stability of an asset you can then use to help fund your own business approach with the house as collateral.

All of this can inspire you to remember the battle is never lost as long as you’re fighting it and trying to make that change. Then, when the prices come down and the market shifts as is always inevitable, you have a better path forward.

With this advice, we hope you can take that first step.

Pin for later