The property ladder is something that you want to do sooner rather than later. As much as renting is affordable and, for some, is the only option until they’ve saved a deposit, it’s important that you’re working towards purchasing your first home, whether you can do this with a small loan, a bigger one, or buying it outright. Here are five reasons to get on the property ladder.
Invests Into Your Future
When buying a property, even though you’re living in it, it’s still an investment property. Eventually, once you’ve paid off any loans on it, like a mortgage, you’re going to end up with a large sum of equity in your home. It means that you can then sell up if needed and downsize to a small home that helps you have a bit of extra money to enjoy for your retirement. Investing your money is important because by investing it, you’re hopefully making it go further and make additional money. By putting money simply into the bank, you’re not going to see much growth in terms of interest rates. That’s why it’s a good idea to invest your money into various different investment opportunities, like the property market. Buying a property is something you’ll benefit from further down the line when you have children and perhaps want to support them in their journey through life too.
Renting Is Dead Money
Renting is necessary for a lot of people who cannot yet get on the property ladder. It can also be a stepping stone from having moved from your parent’s property and wanting to get that independence. However, it’s worth remembering that renting is dead money to you when it comes to your future from a financial perspective. You’re not getting anything from it because the money is going straight into someone else’s pocket. That being said, it’s good to acknowledge this as it might help to continue your motivation in saving the money needed to put a deposit on your first property. Of course, if you’re working abroad, it’s suitable to do a short term rental Singapore than to think about anything too permanent but when you want to live somewhere permanently, buying a house is important.
Gives You The Freedom To Decorate
There are many restrictions that can come with the rental market and moving into a rental property. One of those smaller but significant things is the freedom to do what you want with it. When you rent a property, you’re not going to have much freedom in what you can do to its layout or design. For many, even hanging a frame up or painting a wall would be a no-no. When you have your own property, however, you can do whatever you like, as long as it’s within reason, and you’ve got planning permission for any extensions, etc. Being able to have complete freedom to decorate your own home is something you can definitely miss when you’re renting, and in a way, it stops it from being a home that you truly love. Yes, a lot can be done to make it feel homely, but it’s only a temporary measure.
It Can Be An Additional Money Maker
An additional money maker is something that a property you buy can be. It may be that you’re in the position to let out your home when you’re on holiday or if you have an extra spare room or outhouse you want to utilize. There are lots of opportunities for financial gain that can present itself when it comes to owning your own home. With renting, you can’t simply sublet it out, and there’s no way of really making any money from a rental. With owning a property, however, sites like Airbnb can help the average homeowner make more money. There are even companies that use properties for film sets or shoots, so there’s certainly a lot of benefits from owning your own home.
You Unlock More Cash
When owning your home and paying a mortgage, you’re slowly unlocking more potential cash. You can release equity from your property, which means you’re going to have access to money that you can freely spend. This can be very beneficial in situations where you need that extra cash to pay for things later on in life, whether that be your retirement or towards helping other family members.
Getting on the property ladder isn’t easy, but once you’re on it, it can certainly help for your future financials going forward.