How Does the Career Path You Take Determine When You Can Buy Your First Property
Tips & Tricks

How Does the Career Path You Take Determine When You Can Buy Your First Property

The career path that you choose to take has a large influence over when you are able to buy your first home. If you choose a career that isn’t lucrative or in demand, then you could have to wait longer to buy property than a person who, for example, becomes a doctor.

If you want to get on the housing ladder at a young age, then you need to select a good career. This article will further explore how your career path determines when you can buy your first property:

Income

If you choose to work in an industry that doesn’t pay very well, then you won’t have much luck when it comes to getting a mortgage. Jobs that do pay well, on the other hand, will make getting a mortgage much easier. Physicians and healthcare workers are much more likely to secure a mortgage than a checkout clerk is. In fact, it’s possible to get a dedicated physician mortgage which makes the home buying process much easier for them. Healthcare workers earn a lot more than most ordinary do, which is why the healthcare industry is worth getting into if you are still young and have time to study at college.

Security

Job security also determines how likely you are to buy a house at an early age. Going back to the healthcare industry for a moment, physicians tend to stay with their employers for as long as they want to, or until they find a new job, with very few periods of unemployment. There isn’t a very high turnover rate of physicians, whereas warehouse staff come and go on a weekly basis. If the industry that you have chosen to work in is constantly changing, requiring new staff, then you won’t have much luck buying a house young. You need to find a career that offers job security. You need a career or life.

Ascension

Another factor that determines your ability to buy a house is your career ascension. If you are working a low-level job, then it’s very unlikely that you will be able to sustain paying a mortgage if interest rates rise. If on the other hand, you have career ascension guaranteed, then you can confidently get a mortgage knowing that if interest rates rise in the future, your income will also rise. Checkout clerks, warehouse staff, and taxi drivers are all people that don’t have much career ascension. On the other hand, physicians, lawyers, and salespeople all do.

Credit

The amount of money that you earn, your job stability, and the industry that you work in all determine your credit score. If you have a very low credit score and have made bad financial decisions in the past, then mortgage lenders might not lend to you at all. The more money that you earn and the better financial decisions you make, the more likely lenders are to give you a mortgage. It’s important to bear this in mind if you are trying to buy your first property. If you have bad credit then you will not have any luck and may struggle to find a lender. While bad credit lenders do exist, they often charge extremely high-interest rates which aren’t ideal.

Savings

The amount that you earn and the industry that you work in determine your ability to save money. If you hardly make any money, then you will struggle to save for a deposit. Mortgage lenders require people to put deposits down for their houses. If they don’t put deposits down then they are unlikely to be able to take out a mortgage. The amount required for a deposit depends on the lender, though as a general rule of thumb it is expected to be around 10% of the value of the property that you are buying. Some mortgage lenders will only accept a deposit if it comes from your work. If it is a gift from family or friends, they may not.

Stability – Buy Your First Property

In order to get a mortgage, you need to have a job that is in a stable industry. You won’t have much luck buying – or retaining – a house if the industry that you work in is unstable. An example of this could perhaps be factory workers, who in the coming years will be nearly totally phased out because of automation. You need to pick a career that is always going to be in demand and can’t be phased out by technology. There are many careers that aren’t going to exist due to automation in the next twenty years.

Finding the right job is a very important part of the homebuying process. Lenders won’t consider you for a mortgage if you don’t have a stable job in an industry that offers job security. Bear this in mind when you are looking for work.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.