what is propertyladder, wrt real estate purchase?

Answer 1

A property ladder is when you use one property to create enough purchase power to buy up. For example: You buy a fixer upper, invest a small amount of capital and a lot of sweat equity and sell it for a healthy profit. You then use that profit to invest in a better property, which you again improve as before, and sell that for more money than it cost you....and on, and on.

Conversely, you could buy a fixer upper property that was already divided into apartments, or large enough to divide into apartments, and then use the income generated from the rentals to purchase another property.

However, if you have been paying attention to the news lately, you will have noticed that real estate is no longer as desirable an investment. Interest rates are rising, which means that people facing mortgage payments are less likely to spend as much as they would have before on a property. Also, all those gimmick mortgages are now finally catching up with people who bought more house than they could realistically afford because of low initial interest rates on those mortgages. The result is that the market is being flooded with houses that are in foreclosure. The end result is lower property values and increased finance costs.

Answer 2

Owning a home. Moving up to a higher standard of property as your income increases and your equity position in your home improves.