Purchasing a home for the first time can be an extremely expensive task. In order to successfully be able to get on the property ladder as a first time buyer, it is important that you are aware of the different methods of purchase that are available to you.
One of the most popular methods of getting on the property ladder recently is through home ownership schemes. These allow you to obtain a home with financial help and take away the daunting issue which comes from excessive debts and loans. These schemes are available through the government and are known as HomeBuy schemes. Rent-to-buy is a relatively new concept within the UK but enables you to rent a property with half of your monthly rent being put aside for you so you are able to place a deposit down for the property in a few years time. This is extremely advantageous as you are not wasting money on properties which you cannot afford in the long run, and you will secure the property at a price which reflects today’s market value. Shared ownership schemes are typically operated through housing associations and are designed to help those who are financially unable to get on the property ladder themselves, or those who are current homeowners but are unable to move due to lack of funds. These schemes work by the individual/s purchasing a share of a property and paying back the rest of the balance through monthly rent. Those who are current residing in council or housing association owned homes, also now have the chance to purchase their home, getting them on the property market with great ease and without having to uproot their family.
Depending on your current financial situation and your annual income, you may eligible to gain a loan and/or mortgage. Nowadays, many lenders will offer you up to five times your income, and with mortgages being available over longer periods of time, you are in no rush to pay back the full amount. However, this can be dependent how old you are and can cause you to land in negative equity. With the current slump in property sales, you may also find that you are left with no choice but to resume in your home for a considerable amount of time.
In order to cut costs, many first time buyers look to purchase a home with a friend or their partner. However, before agreeing on this, it is vital that you assess who it is you’re planning on living with and what the situation would be if circumstances were to change-this is more so important if you are planning on living with your partner and you are unmarried. Co-buying can help eliminate the issue which comes from gaining the deposit and overall sharing costs so can be extremely cost effective but it is important to gain legal advice beforehand so all proprietors are aware of their rights. Another alternative is to look at auctions which offer homes at a reasonable price. It is often difficult to find homes at estate agents which we are easily able to afford, but through auctions it is feasible. The disadvantage with this is that there are certain rules in place and once you have made an offer, it is legally binding once the gavel goes down. You will then be required to pay 10% deposit and pay the rest of the price within 28 days.
In today’s society, it is a common thought that may UK residents will be unable to purchase their first home, but with so many options available to us, this is simply not true. By looking into the different options which are available to you, you too could soon become a proud homeowner and take that first step onto the property ladder.
http://www.whathouse.co.uk
http://www.whathouse.co.uk/
http://www.whathouse.co.uk/
