house in the UK

First Time Buyers now pay less or no tax if all purchasers are First Time Buyers and the purchase price of the property is £500,000 or less.

Since 1st July 2021, the current Stamp Duty Land Tax (SDLT) threshold has gone down to £250,000. Although the bigger savings before this date have now been reduced, there is still an opportunity to save up to £2,500 on SDLT before it returns to its regular threshold rate of £125,000 from 1st October 2021.

What has gone unnoticed by most commentators is the change that affects First Time Buyers, which also came into effect from 1st July. Since that date, First Time Buyers now pay less or no tax if all purchasers are First Time Buyers and the purchase price of the property is £500,000 or less.

First Time Buyers are exempt from SDLT for the first £300,000, but since 1st July, they now pay a reduced rate of 5% on purchase prices above £300,000 and up to, and including, £500,000. So, if you’re a First Time Buyer, but were unfortunate to miss out on the 30th June deadline, there are still longer-term savings to be made, as these will continue for First Time Buyers after the SDLT returns to its £125,000 threshold from 1st October 2021 for all other buyers.

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Selling your house, especially if it’s your first home, is a big decision and not one to be taken lightly. Before you go buying your next house, make sure you’re ready to sell your current one first. I don’t mean applying a new coat of paint and trimming the hedges, although that certainly helps the sale price. I mean other things you might not have thought of. Here are 9 key things you need to consider when selling your house.

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

1. Your Finances

First, consider your financial situation. Where will you live after you sell your house? If you’re moving out to an apartment first, there will be a period of a few months where you’ll be paying a mortgage and rent. Can you afford that? You’ll need to have some extra funds put aside to help cover you for those months.

2. The Price

Hand in hand with your finances, comes the price you want for your house. What you bought the house for and what you want to get out of it are irrelevant. What matters is the current real estate market in your community. An appraiser will accurately tell you the true value of your home. Don’t ignore their recommendation and market the house at too high a price or you’ll put off buyers. Remember, those buyers have realtors who can tell them if a house is priced too high.

3. Paperwork

Don’t let your house sale be held up due to missing or incomplete paperwork, ensure it’s all in place from the word go. Are there any issues with the house that would prevent you from selling it? For example, what if you owe more than the house is worth? This will slow the process down as the bank will need to approve the sale price. What if you discover that your mortgage has a prepayment penalty? Talk to your lender and ensure there’s going to be no issues and that you have everything you need in place to help your sale go smoothly.

4. Your Realtor

You will have plenty of choices when it comes to choosing a realtor. There is certainly no shortage of realtors in your area looking to sell your house. After all, they earn a living off the commission. You can either choose a big name company like remax or 21st or instead hire a local realtor. There are pros and cons to each approach. A big company would have the resources to get your house out there in front of a lot more people. Yet the local realtor truly knows the community like no other.

5. Your Likely Buyer

When getting your house prepared for the big sale, consider your target market. Do you live in an area with a lot of young families or conversely is it mostly peopled by downsizers? Think about the likely buyer of your home and stage the house accordingly.

6. De-clutter

The first step to making your home appealing is to de-clutter and depersonalize the space. Look at your home with fresh eyes and take down decorative items specific to you (like family photos) and de-clutter each room to maximize the space. Simply leave enough furniture in each room to show its purpose.

7. Finish Odd Jobs

Finish all of those odd jobs you’ve been meaning to get around to, from fixing dripping taps to cleaning moldy grouting. The houses which sell quickest are those which don’t need work done to them. Leave small jobs undone, and potential buyers will worry what else you haven’t done.

8. Refresh

A fresh coat of paint can do wonders to brighten up and refresh a dated home. Choose white or cream to maximize the sense of space, and to appeal to as broad a range of people as possible.

9. Clean

Nothing is a bigger turn-off to potential buyers than a grubby property – so pop on your rubber gloves and start cleaning. The less a potential buyer has to do, the more they can imagine themselves living in your property.

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A new survey has found that only 1 in 10 people take a property’s energy rating into consideration when looking to buy a house. A poor energy rating could however cost homeowners thousands of pounds each year.

The research, conducted by construction and Regeneration Company Keep moat, found that buyers tend to prioritize factors such as local amenities, transport links, and parking when looking for a new home, over the building’s energy rating.

The survey of 2,000 Brits found that the energy rating was actually the second least important factor people took into consideration when buying a new house, followed only by its future investment potential.

The highest priority for buyers looking to move house was actually living near family, but green space was also quite high on the list.

New measures now mean that landlords are required to ensure any new homes they rent out meet a set standard of energy efficiency by the year 2018, and any existing properties by April 2020. An Energy Performance Certificate (EPC) includes information on the amount of energy a property uses, how much that energy typically costs, and how the energy usage could be reduced.

Landlords will have to comply with an Energy Performance Rating of C in accordance with the new legislation – the scale ranges from A (very energy efficient) to G (poor energy efficiency). The majority of new build properties have an EPC rating of B or C, and older houses can easily be boosted to a higher rating with a few changes round the house.

It’s quite hard for a home to achieve an EPC A rating unless the owners start producing their own electricity or hot water using solar thermal, solar PC, or air-source heat pumps.

Government analysis found that a good energy efficiency rating could add more than £16,000 to the asking price of a property. The easiest way to boost your property’s energy efficiency rating is by either adding cavity wall insulation or making sure your loft insulation is at least 270 mm thick.

Energy efficiency is important for both those looking to sell and those looking to buy, as it can benefit both financially. Buyers may regret not taking energy ratings into consideration when they are hit with their first winter bill at a new house. When looking to buy, a budget should be put together including mortgage repayment and bills for the whole year.

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UK is about to become a world leader for ‘for speed, simplicity and an open approach to data’, when it comes to real estate transactions. This is the goal the Land Registry set for 2018 and it should be reached once digitalization is in place – 6th of April 2018.

The process will become simpler, faster and cheaper while at the same time the integrity and security of the register against threats from cyber-attacks and digital fraud will be strengthened…

But what are the implications for those acting on the real estate market: sellers and buyers?!

Details in the article on Property Wire:

Buying and selling property moves into the digital age in the UK

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Investing in a property is a big deal. Investing in a home is a bigger deal since it implies the emotional part of every buyer. Whichever the case, finding the right property is hard. All the stars must align and create the context to seal a contract.

However, there are a couple of things a buyer can do to make sure he/ she gets exactly the desired property. Property Division made a list and explained all of the actions the buyer can do:

1. Contract a Knowledgeable Agent

2. Sugarcoat Your Deal

3. Be Ready to Compromise

4. Pay Extra Money as Down Payment

Read all the arguments why you should do this in the article below.

4 Tips to Finding the Right Home in a Buyers Market

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Photo source: Wikimedia Commons – Aberdeen Neighbourhood http://bit.ly/2hLjBns

Are you wanting to move but finding it hard to decide what area you are looking to move to? One thing you need to remember is could you live in a quiet town out in the sticks or in the busy centre of a city.

 

It not an easy decision to make. It may be your dream to live out in the country side, in the fresh air and enjoying the slow pace of life but you may end up finding it too slow or too much of a distance for getting from A to B with the long country roads. But then again, your dream may come true exactly as wished and it turns out to be the best decision you ever made.

 

There are a number of things to take into consideration when moving to a different part of a town. It can take time to get to know the area well enough to know whether you would like to live there, and many issues will not apparent from just visiting.

 

At first you will need to choose an area that you can afford to live in, the sort of property you want to live in. City Centres tend to be more expensive than the countryside, the South tends to be more expensive than the North and London is obviously much more expensive than pretty much anywhere else.

 

You will also need to decide what type of property you want, whether it is a new build, house, flat or a bungalow. Also, what is the minimum number of bedrooms you would consider, do you want your own front door, or are you happy with a conversion flat.

 

There is also employment to think about. If you are moving from the city to the countryside, consider that you may want to adapt your work-life balance or spend more time with your kids, all of which might require employment opportunities closer to home. Ensure you leave room for career flexibility. Don’t move to a one-industry town if you are about to leave the industry. Ambitious people may require access to larger centres of employment and job markets.

 

Spend days wandering the area you are interested in. You will probably spend years there – it is worth investing time to make sure you are happy where you end up.

 

Visit the parks, the pubs and shops, see if you can you feel yourself living there. Even if you rent at the beginning, it is better to rent somewhere in a village and find you can’t stand village life, than buying and selling in distress a couple of years later.

 

Once you have chosen a rough area, drill down – life can vary dramatically street-by-street, or village by village. Chat with the estate agents – they usually have good insider information about the local variations.

 

If you do choose to move to the city, one side of a suburb can be very different from another. Council Tax can be dramatically from one side of the street to the other. Transport link, what may take five minutes from one street to a bus stop my take twenty minutes from another.

 

Then you will need to make sure you are moving somewhere child-friendly. Good schools are vital. Visit the Ofsted’s website to find out information about the schools in the wanted area. Also, the local councils will generally tell you the precise catchments area of their schools in recent years.

 

Living where lots of other families already live is a good bet, and will ensure lots of facilities for families.

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The Government announced a support of almost £23 million for communities. This budget is to be used to develop Neighbourhood Plans until 2022.

What should come out of this move after the entire period?! The type of local growth the British Government is encouraging targets new buildings and homes, parks and other type of green spaces, offices, and shops.

Details upon the outcomes in this article below on Property Wire.

£23 million announced to help communities have a say in new housing

The pro-active moves of the Government however do not compensate on the lack of active involvement until now on ‘abusive’ leaseholds. The officials are expected to ‘make a move’ on current leaseholds and ban these types of contracts in the future. Considering the plan to build and develop new homes, the actions taken now should be a ground for more reliable future leaseholds.

Calls for UK Government to urgently sort out ‘abusive’ residential leaseholds on new builds

 

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Photo source: Wikimedia http://read.bi/2ipsgP4

Education is the most important criteria even when it comes to choosing an area to live in.

Latest studies state that one in four parents move to be near a school they find suitable for their children.

Usual buyers might have a lot of criteria when searching for a home, but families tend to prioritize depending on the schools in the neighborhood. Moreover, parents are actually willing to pay more for a house in their focus area. And the extra money is not to neglect: the average plus 12% the studies show to be paid extra equals about £26,800 to the average property price.

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We know the news about house prices going up or down, from month to month. We heard about the slowdown in the growth rhythm from quarter to quarter.

All in all, the specialist now call this phenomena on the UK housing market a period of ‘plateau’. Details and previsions about the future of the market in the article on PropertyWire.

UK housing market has reached a plateau, analysis suggests

How do you think this will affect you? Any of you already felt the effects of this stagnation?

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