Getting on the property ladder means beginning your property ownership journey to acquire and sell more property over time. It typically involves going from being a tenant to being a homeowner and possibly owning multiple homes. For some, the appeal of the process lies in being able to own a home. For others, the goals are much more ambitious, like having property in different locations, for instance, a holiday home or a vacation rental. Getting on the property ladder is a process that could take more than ten years, depending on your goals. The most brilliant move is to start as early as possible and gradually progress.
Once you have decided how to achieve your property goals, get into the specifics of the kind of house you want to own. You can check this link and see what you like about the types of homes available for sale in Nairobi. Nairobi is an attractive location for future homeowners in Kenya, and it has many different neighborhoods buyers can explore. Of course, this step is just the beginning of the process. You will then have to think about financing your purchase in the best way possible. Below are some suggestions on what options to consider and those that may not be intelligent choices.
1. Pay off debt
Before you even begin to consider acquiring something as expensive as a house, you need to take care of your debts. Buying a home is a demanding financial process, and starting with debt would not be wise. If you choose to take out a mortgage to buy your first home, the debt accumulation could become overwhelming. Instead of beginning with a deficit in your net worth, get ahead of any debts first.
2. Secure your income sources
Having a job or some form of income is especially important for anyone looking to raise enough capital to own a home. Even more important, your job status needs to be secure enough to sustain the investigation. If you take out a long-term loan for a new home, you will need a way to pay off the loan sustainably. Even if you purchase without a loan, you need a source of money.
3. Save for the process.
Next, you must begin to set aside money deliberately for your goal. Building your own home is one way to get on the property ladder. To do that, you will need to buy the land first. You will have collected enough by saving money over time to make a one-off purchase or at least a payment contract over a couple of months. Then, you can start looking for sources of cash to fund the house construction process.
4. Work with a financial advisor.
Mortgages, property purchases, and property investments are significant financial decisions. You may have enough basic knowledge on how to access a loan or where to look when searching for your dream home. However, you will need a clear understanding of the financial obligations you will be taking on as you make your investment. Speaking to a financial advisor will allow you to make the most informed choice.
5. Explore your options
Once you have laid down the framework for your investment goals, you can look at the available options. Instead of taking on a mortgage, for example, think about joining a money market fund and pooling funds alongside other investors. You can also buy a home with someone else, like a spouse or a family member. Other options to explore include potential home locations after looking at the pros and cons for each area.
Getting on the property ladder should be one of your financial and social goals, especially when you start your career. Property ownership is more than a social ambition. It is a financially savvy way to invest your money and increase your net worth over time. Due to the time, the process can take, starting your journey as early as possible is prudent.