Property prices in the US are rising at an extraordinary rate. As per Bloomberg, data from July 2021 showed a remarkable 19.7% annual gain in house prices.

The US housing market is booming, and many wonder how they can ride the wave to climb the property ladder quickly. Going from a one-bedroom to a big house is possible for those willing to take the necessary steps.

No matter if you’re a first or a third-time buyer, there are a few reliable ways to move up the property ladder. Continue reading to learn more.

Build Your Credit Score

It’s essential to build up your credit score because most people need help from lenders when purchasing a home. The better your credit rating is, the more they are likely to lend you, and your mortgage terms will be better.

Use a credit card, pay your bills on time, and try to pay off any existing debt that you have. Your finances need to be in order because lenders have rigorous standards to determine who qualifies for a loan.

Don’t Try to Skip Rungs on the Property Ladder

Perhaps you are tempted to try and save up for that dream three-bedroom house with a big yard in the suburbs. However, trying to move here from a one-bedroom flat is not a good idea.

That’s because the housing market continues to increase at a far higher rate than your wages ever will. By attempting to skip rungs on the property ladder, it will take much longer to sign on to your dream home.

Take on a ‘Project’

Although it may seem quite daunting, consider buying a home that requires fixing up. Do the renovations and watch the property value soar.

Ideally, try to purchase a property that needs cosmetic work, rather than expensive structural work. By renovating a cosmetically tired home, you can gain significant equity on it.

Taking on a ‘project’ is an excellent way to move up the property ladder quicker. Buying a condo or a flat in need of a refurbishment will save you lots of money. The work you do on it will add extra value, while inflation can do the rest of the work for you.

Be Prepared to Make Sacrifices

Giving up certain luxuries and saving money will allow you to place a bigger deposit. This will translate to more immediate equity and even better mortgage terms.

By putting down a bigger deposit, you’ll be in a much stronger position when you take that next step on the property ladder.

To save money, consider moving in with your parents for a while or taking a temporary second job. Also, cut out on luxuries such as vacations abroad and expensive meals.

Step Up That Ladder

Climbing the property ladder may seem like a daunting task, but these four tips are sure to help potential buyers.

Make intelligent choices and, in just a matter of time, you’ll find yourself in a much healthier position to purchase your ‘forever’ home.

Before you leave, take a look at more of our blogs on homes if you found this article helpful.