first time buyer

Saving up to buy your first home is a challenge that can at times, feel impossible. If you’re a future first time buyer looking for tips on saving for your first home, read some of our advice below:

Correct preparation

It’s important to think about what you need to do before you even start looking at properties, such as saving for a deposit. The general rule of thumb is to save at least 5-20% of the value of the property you want to buy.

So if you’re looking to purchase a home that costs £200,000, you’ll need to save at least £10,000 (5%). But saving more than that will grant you access to a larger range of more affordable mortgages.

But keep in mind that deposits and monthly mortgage payments won’t be your only outgoings, you’ll also need to invest in surveys, removal costs, building insurance, stamp duties, and solicitor fees.

It might go without saying, considering what we outlined above, but saving a little extra per month goes a long way in speeding up the process. Perhaps give up a gym membership and exercise at home, or skip your daily coffee; it’s not easy, but in the end it will certainly be worth it.

Taking care of your money also helps you build a better credit rating, which will open you up to a wider range of mortgages later down the line.

Explore your options

The government has several schemes that assist first time buyers onto the property ladder, including:

Shared Ownership – this is where you purchase a share of your property from the landlord (usually a housing association or the council) and rent the remaining share.

Help to Buy – this is where the government makes a 25% contribution to what you have saved. If you save money into a Help to Buy: ISA, for every £200 you save, you will receive a government bonus of £50. However keep in mind that this scheme is only applicable for New Build properties.

Rent to Buy – this is a government scheme which aims to ease the transition from renting to buying, providing subsidized rent for a certain number of years in rent to buy homes. After the time has passed, you have the option to buy the property, or enter a part rent/part buy shared ownership scheme.

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You have probably heard that first impressions are vital but did you know that within 15 seconds a buyer has already developed an opinion of your property? This is why creating the right first impression is critical to achieving a successful sale.

Photo source: Flickr https://bit.ly/2EuJksz

FROM YOUR DRIVEWAY…

Ensure the front garden looks its best – mowed lawns, weed-free flowerbeds and an uncluttered access to the front door. Make sure your house number or name is clearly visible from the road. Leave plenty of room for potential buyers to park.

A WARM WELCOME…

Be ready, turn the heating on and light fires in winter. Open curtains and turn on lights because people react favorably to brighter properties. Appeal to the senses with fragrant flowers, there are many ways to create an exciting interior with surprisingly little money.

FAMILY PETS…

Its preferable for your pets to remain outside during viewing. Where possible make sure your carpets and furniture are hair free.

THE CHEF’S PRIDE OF PLACE

Your kitchen can have a major impact on the sale of your house. It should be well organised with tidy cupboards and worktops. Make sure its is virtually spotless and smells fresh. And keep your tea towels in the drawer not over the hob.

SPACIOUS BATHROOMS

It’s imperative this room looks bright, clean and tidy. Dripping taps, discolored carpet, dirty tiles or evidence of a leaking shower unit should be addressed. Make sure the toilet seats stays down.

TIDY BEDROOMS

Clean and tidy bed linen gives the impression you care about the presentation of yourself and the property you live in. Remove any evidence of washing or ironing to allow your room to look larger and more spacious. Clear the toys and make the beds.

D.I.Y.

Don’t allow your property to let you down, ensure any loose tiles, missing handles or broken windows are mended or replaced. If you are unable to do the task simply ask us to recommend an expert. Bad D.I.Y stands out more than you think to a buyer.

PRESENTATION

The positioning of furniture in each room can give the impression of either clutter or space. If necessary, remove some furniture from your main rooms. living, dining, and master bedrooms to allow ease of viewing. Touching up paint and re-sealing wallpaper can improve the quality of presentation. First impressions are vital.

YOUR BUYER LOOKS INTERESTED?

Buying a new home is a big decision and expense. By understanding the buyer’s need to visualize themselves living in your home you can dramatically increase its sale-ability.

Let buyers look around at their own leisure.

Have all essential guarantees on hand and be prepared to answer any questions that arise.

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Photo source: Pixabay http://bit.ly/2FX1ic8

We’re not going to lie and pretend that selling a home doesn’t come with certain filing requirements. However, if you’re well prepared and allow plenty of time to get your affairs in order, you’ll avoid any last-minute panic. Follow our guide to discover more about what documents you need to move home and make the house-selling process that much easier.

 

Property title deeds

If you don’t have the property title deeds for your home, don’t worry too much. However, you will need to produce the deeds to prove that you do own the home you’re selling. You’ll be able to obtain these from the solicitor you used when originally applying for a mortgage or buying your existing property, or failing that, you can contact the Land Registry.

 

Energy Performance Certificate

All domestic and commercial buildings must have an Energy Performance Certificate (EPC) and it needs to be available to potential buyers as soon as you put your house up for sale. It is a useful document, which gives information about how energy efficient a property is, according to a rating of between A (very efficient) and G (inefficient). Only accredited Domestic Energy Assessors can produce valid EPCs.

 

What if my property is leasehold?

If your property is leasehold, you will need to provide a copy of the lease and complete a seller’s leasehold information form. Don’t forget that if you pay a management fee for services and maintenance you will also need to send off for a Management Information Pack. Your solicitor should be able to obtain this on your behalf.

 

Fittings and contents

Sometimes referred to as the Schedule of Fixtures and Fittings, the Fittings and Contents Form (TA10) specifies what the seller is including in the sale of the home and what will be removed.
In addition, anyone selling a property is required to fill out a Property Information Form (TA6). This is a questionnaire which gathers information about, for instance, planning consent and building regulations.

 

Anything else?

When dealing with a solicitor you will always need to provide proof of identity, so make sure you have a passport and recent utility bill to hand. You should also collect details of your existing mortgage, along with your account information and the amount outstanding.

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… but don’t give up easily!

The profile of a first time buyer (FTB) is clear: around 32 and with an income of £66,000. They want a home and usually turn to mortgages to become homeowners, but still have a hard time getting what they want.

First time buyers still struggle to get on housing ladder in London

However, another advantage of a young first time buyer is that they don’t give up easily. So, despite the challenges, first time buyers seemed to get the loans they needed in January. The figures rose compared to December and November, which is a good sign…

Home loans to first time buyers in the UK increased in January

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A new research focused on the profile of the first time buyer has some very interesting results to take into consideration by the sellers on the property market.

According to this study, the average first time buyer is aged between 25 – 34. Apparently, some of the buyers postpone the moment of getting their own property because of the money they need to have as deposit (nowadays around £22,689) or the big property price.

The average property price for first time buyers rose from 2000 until today by £136,000 causing a decrease in the number of first time acquisitions by 27%. Considering the changes that took place on the property market as a whole in recent years, we dare to say the fall is not as drastic as it could have been.

New research reveals there are fewer first time buyers in the UK and they are older

However, what should raise more concern is the basis for the entire study: a prediction made by PwC ‘that London will become a city of renters by 2025, with only 40% owning their own home’.

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I am 22 years of age and would love to buy my own property. 

copyright: https://upload.wikimedia.org/wikipedia/commons/c/cc/Captain_Bligh_House_London.jpgBeing a first-time buyer usually means forking out rent, saving for a deposit and playing catch-up with ever-rising house prices all at the same time! 

London is the ideal place to buy a house or an apartment for me. It is a great place to live in, but it can be expensive if you are a first time buyer.

Not only are properties expensive to buy (average price in the borough of Redbridge is £446,581) but I will also need at least 20% deposit + stamp duty costs + legal fees on top of that.

Based on my salary, it would be impossible to apply for a mortgage based on the average property prices in London. My own research shows that there are two solutions for purchasing a property.

– Buy a property out of London as it is a lot cheaper, therefore, affordable for me.

– ‘Help to Buy Scheme’ 

The scheme requires a minimum 5% deposit of the property value with the Government offering an interest-free loan of a further 20%. The remaining 75% is covered by a standard mortgage.

As an example, if you want to buy a £200,000 property under the Equity Loan scheme, you would need a minimum deposit of £10,000 and to qualify for a £150,000 mortgage. The Government then provides an equity loan of £40,000.

Another option would be to buy jointly, either with friends or family.  I think this is my preferred option, so far. 🙂

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