Three Ways to Get on the Property Ladder
August 2, 2017 | Posted by: Richard Allatt
Property investment is more challenging than ever due to a buoyant housing market in Ontario and the rising cost of living. Many people are concerned they'll never be in a position to buy a property, but the great news is there are several keys things you can do to get your foot on the property ladder.
- Consult a financial planner. Once you've decided to buy a property in Ontario, seeking financial planning advice is imperative. A financial advisor can save you a great deal of time and money, and help you avoid the costly mistakes made by many inexperienced home buyers. A financial planner will help you realistically assess your budget and suggest strategies to maximise your income and prepare for the future.
- Develop a savings plan. There's no point trying to save a deposit for a house if you don't have a solid savings plan in place If you're serious about property investment. you need a plan, developed in consultation with your financial advisor, that allows you to build your nest egg while not sacrificing your quality of life today. After deducting your current housing costs, try to put aside the same amount which you have calculated you can afford to pay towards your mortgage each month. This way you'll be able to determine if you can realistically afford these payments before taking the plunge into property ownership. You'll be bringing the dream of property ownership closer to reality by making regular substantial contributions towards your deposit.
- Research. While it's great to seek help from financial planners, it's also important to educate yourself on the property market and financial products. Research the areas you would consider buying in to get a good understanding of market values. Go to property listings well before you're ready to buy so that you have a solid idea of what you can expect to get for your budget and the different options available. If you're experienced at attending open houses you're far less likely to fall head over heels with a property and make an unwise decision based on your heart instead of your head. Talk with a Mortgage Broker to learn about the different types of loans available and discuss which one best suits your needs.
Property investment requires a great deal of financial planning and consideration, but it's worth it to get your foot on the property ladder.