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Make Every Step Up The Property Ladder Easier

When it comes to making the best portfolio of investments, climbing up the property ladder is a great way to make sure the money you put into the process is backed up by tangible assets. Many will spend much of their lives slowly moving up from one property to the next, but the truth is that you might be able to do it with much less hassle. Here are the ways you can make sure your climb up that ladder is as smooth as possible with as few missed rungs along the way as possible.

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Be precise with your investment needs

The first question to ask yourself is to find out how exactly you intend to make money back on this investment. Depending on your answer, you might find that there are more profitable ways to invest in a property. For instance, if you’re renting it, then spending on refurbishing the property will make it a more attractive prospect to many potential tenants. If you want a quick investment, is in a good area with plenty of appeal to your target demographic, such as having schools and shops nearby if it’s a family home? If you’re willing to play the long game, is the area starting to show any signs of new development such as several new businesses open in the area?

Diversification in real estate

If you want to climb that ladder faster and higher, then you also have to consider that sometimes taking another route up might be more sensible. For instance, you may take on an investment that’s in an up-and-coming in area but far from reaching its full potential. If you look at other markets for shorter-term gains, then you may very well keep making returns often enough to resist the urge to take an offer before the other property has had a chance to ripen and has yet met its full potential in terms of return made by you.

Scale your services with your properties

If you manage to successfully climb the property ladder, you might end up with properties of significantly more wealth than where you started, as well as taking deals in industries far removed from your initial investment. When choosing estate agents, legal conveyancers and advisors, or mortgages, make sure their services fit the kind of property you’re dealing with. Just because your past lender was able to help you afford a mid-range residential property doesn’t mean they have the expertise in high value mortgages to help you afford significantly larger or fancier properties. If you think you’re moving outside the comfortable range of the services you rely on, then it’s time to start looking for new agents, mortgage providers, and so-on.

Keep learning about your markets

You might rely on services that can provide a certain expertise and insight into the market you’re investing in, but the responsibility for which options you choose and what financial moves you make always lies on you. If you know little about your market, you might end up spending in areas where you’re less likely to see a return and make little impact on your chances of finding a buyer or tenant. For instance, if you’re operating in the world of luxury property, then you might not need to focus as much on repair and perfecting the smaller details of the building you’re buying. This is because most luxury home buyers are a lot more likely to simply renovate the place when they first move in. Instead, your money might be better spent on staging it with classier furniture.

Free yourself up early

There’s a good chance you’re going to be financially tied to your investment properties for some time. However, that doesn’t necessarily have to be the case. You can help ensure you have the financial freedom to start moving up the property sooner. If you overpay your mortgage, you can free up the equity to take up another better loan that lets you move onto the next property. You can also cut many of the costs of selling a home by taking a contract with an agent rather than paying for all the services involved separately, such as marketing, surveys, conveyancing and more. If you get in the habit of buying several properties a year, then the savings can amount to thousands over the year.

Of course, the advice above is all relative to how soon your properties offer a return, as well as how financially prepared you are in advance. When your portfolio grows to contain a high number of properties, then what might seem like a little mistake in one-deal can cost thousands if repeated often enough.