5 Tips to Move Up the Property Ladder

Property can be a profitable and solid investment, but no investment, no matter how safe, makes you the best return without you managing it. One way to manage your property investment and improve your return is to move up the property ladder. Whether you have a designated investment property portfolio, or you simply want to improve the prospects of the investment you’ve made in your residential home, following are five tips to help you make that move successfully:


1. Renovator’s delight

Often a real estate agent’s euphemism for ‘the place is a mess’ looking for a property which needs some renovation can in fact help you move up the property ladder, and a renovator’s delight is not the backwards step it may first appear to be.

When you purchase a property which needs some renovation, you have a good chance to increase the property’s value. This means you can either obtain a higher price than you paid when you sell the property to make a fairly quick profit, or you can stay in the property and build or access the equity for further improvements or to fund other family expenses.

Always remember that a renovator’s delight is going to cost you a lot of money before it can start making you any money, so to ensure this really is a step up the property ladder, you will need to have a sufficiently stable financial base to work from.

2. Don’t move

This may seem like contrary advice since you want to move up the ladder, but this doesn’t always require a physical move. Actually moving house costs a lot of money, not only in the costs of moving trucks, boxes and days off work, but also in bank fees, legal fees and home transfer costs. Therefore, the best way to move up the property ladder may be to advance in the property market by making very calculated and carefully researched moves, rather than regular moves just to see some perceived advancement.

3. Choose an up and coming area

You can also make a strong move up the property ladder by buying in an upcoming area. It is accepted knowledge that location is everything when it comes to the value of a property and if you can buy in a neighbourhood which is turning over, and is near the city or the sea you’ll be able to get in at the old prices, and enjoy the revamp to the new look, and more highly valued, suburb.

4. Know the market

Just as not moving can actually help you improve your position on the property ladder, so too can knowing the right move to make in the current market. For example, in a seller’s market there will be a high demand for property, and more people buying that there are people selling. This is great when you need to sell your existing house, but not so great when it comes to buying your next house on the way up the ladder. Therefore, if you are moving up the property ladder in a seller’s market make sure you negotiate with the people buying your house that the sale is subject to you finding and closing the sale on your new house.

In a buyer’s market there are more properties on the market than there are people buying and this means that you should be able pick up a new property at a bargain price as many sellers will be having trouble shifting their homes. Unfortunately you’ll be one of those sellers too, so again, make sure you sign the contract on your new house subject to you selling your old one.

5. Get the best price for your old property

Being able to successfully move up the rungs of the property ladder takes great financial means and security and some of the best financial backing you can have is from your previous property. The more you can sell your old property for, the better placed you will be to move onto your next successful venture. This means taking the time and making the effort to fix up your old home to make it as appealing as possible to potential buyers. Making minor investments in the garden, a new coat of paint or updated flooring can mean you are in a strong position to move to the next rung.

Alban has been writing articles on real estate for the last 3 years.When he is not blogging, he offers tips on personal loans.