There are plenty of guides out there for people who want to buy their first home. How about people who are already homeowners? The ones who want to work their way up the property ladder? There are plenty of people out there who are now ready to sell their ‘first time home’ and move on. They want to sell for a profit and use their profits to climb up the property ladder. Eventually, leading them to their dream home. If that sounds like you, then read on…
Check Your Budget
Just like you had to do when you first stepped onto the property ladder. Now is the perfect time to give your finances a bit of a health check. Check your credit file before you even look at properties or apply for a bigger mortgage. Ideally, you should do this around 6 months beforehand. This will give you enough time to make any necessary changes. Make sure all of your debts are paid back before taking out any more credit. You should also put aside some savings. It may not be the massive deposit you saved up for your first home, but enough to tide you over. After all, you’ll have plenty of other costs to fork out for during the move.
Put Your House on the Market
It’s a good idea to put your house up for sale first. This will give you plenty of time to shop around for something new. Ask for an estate agent to come in and value the property. You should now know whether you’re going to be making a profit. They may recommend that you do some renovation work to bump the price. Always do this first! The more money you can make from the house sale, the higher up the property ladder you’ll rise. Do everything you can to make your home seem perfect to buyers.
Now it’s time to look for your new home. You should have a good idea of what you can afford, based on what your property has been valued at. It may be wise to call your mortgage company and find out how much extra they would be willing to lend. At least then you’ll know what your maximum budget is. Look around at upscale homes for sale that are within your price range. Remember, you want to go a few steps up the ladder. You don’t want to try and jump to the top too quickly. Well, unless you’ve won the lottery. Find a house that you like, exchange contracts, and move in. Simple!
Rinse and Repeat
If you want to get to that dream home then you’re going to need to continue this process for some time. Renovate the old house, put it on the market, make a profit and move up the ladder. Keep saving as you go, to pay for those higher legal fees. Eventually, you’ll have saved enough to buy the house of your dreams. With all the profits from your previous properties. Now, how easy does that sound?
Climbing the property ladder may be slow, but it’s extremely rewarding. Especially when you finally move into that home you’ve been dreaming of for years.