FIRST TIME HOME BUYER BENEFITS
There is a lot of emphasis put on owning your own house, but getting on the property ladder is one of the most difficult things to do, financially. Long term, however, and there are so many advantages to owning your own home. Here we look at what first time home buyer benefits there are for those thinking about entering the property market. We will look at: You’re not in a chain, The process is quicker, There are financial schemes available, Stamp duty is not applicable to homes below £300,000
Higher interest rates
THE PROCESS IS QUICKER
THERE ARE FINANCIAL SCHEMES AVAILABLE
STAMP DUTY IS NOT APPLICABLE TO HOMES BELOW £300,000
WHAT ARE THESE FIRST TIME BUYER BENEFITS?
Despite the huge hurdles you have to overcome to get on the property ladder, there are many benefits to being a first time buyer. In fact, in some ways it’s harder for those who already won property to have an easy ride when it comes to buying a house.
Stamp duty can be a crippling amount of money to pay for someone in the process of buying a house. However, it was announced in 2017, that stamp duty would be abolished for first time buyers buying a home under £300,000. This means a significant amount of money can be saved with this new legislation.
First time buyers are seen as an attractive prospect, as they do not have a house to sell in order to buy the house they want. This means that they have the finances in line already to purchase and there’s no third party hold ups.
Selling your home to a first time buyer is a surefire way to get the whole process done as quickly as possible. First time buyers are ready to move into the house, with all the approved finance, and no reliance on anyone else in the process. Plus if the seller has a hold up, there is much more flexibility in the process with a first time buyer.
The government is keen to get as many people in home ownership as possible. As a result, there is a huge array of schemes available for first time buyers. We outline them all here, and will range in suitability depending on your circumstances.
SO, AS A FIRST TIME BUYER, I SHOULD HAVE AN EASY RIDE?
Not exactly. Purchasing your first home can be financially difficult. The first obstacle is the deposit, which in today’s market, should be around £33,000 for property outside of London (and it’s over £100,000 for a home in the capital), according to the latest figures.
For an individual who doesn’t own any major assets, this is a huge amount to raise, and is more than the average salary in the UK. Then there is the mortgage approval, which can falter depending on your income, credit score and personal circumstances.
If you do get as far as owning your home, you will need to bear in mind that all repairs need to be paid for by you. One of the luxuries of renting is that maintenance is covered by the landlord, so first time buyers should always have some money put aside for boiler repairs, roof problems, decorating amongst other things.
As a result, only a select margin of the population can afford to buy their own house, meaning a large percentage of the public out priced out.
"Hip has incredible potential. It brings accessibility and transparency to the property market for owners, occupiers, investors and developers, and allows them to take control and leverage the balance of their debt to equity to their own advantage."Paul Danks,