It’s an all-too-familiar story these days. Young people with good jobs, looking to step onto the property ladder and buy their first home, only to find a myriad of obstacles standing in their way.
There are a number of reasons for these problems – financial crises, surging property prices, larger deposits required, and so on.
Here, we take a look at ways in which first-time buyers can turn their dream of owning a home into a reality, and how taking advantage of up-and-coming areas, such as Walthamstow and Leyton, can really pay off.
Take advantage of government initiatives
The government has been forced to take notice of the difficulties which first-time buyers are experiencing when attempting to buy a property, and the following schemes are just a few of the initiatives which have been introduced or proposed over recent times:
Right to Buy
This scheme is focused on helping tenants of council houses to purchase their property at a reduced price if they are capable of doing so. The Right to Buy scheme also offers a joint application possibility, whereby two separate tenants can choose to make a joint application to buy the house they are residing in. Find out more about the Right to Buy initiative.
Help to Buy
One of the biggest stumbling blocks for first-time buyers is often finding a deposit. That’s where the government’s Help to Buy scheme comes in. Should first time buyers qualify for help to buy scheme, they will be able to purchase a property even if they have only a 5% deposit. Find out more here.
Starter Home scheme
This is a fairly new government scheme, and while it is not yet available, it certainly has a lot of promise. The aim of the scheme is to offer first-time buyers aged 40 and below the chance to buy a property at a discount price. The government has stated that around 200,000 newly-built homes will be available under the scheme, and a huge 20% will be knocked off the market price of any property offered through the initiative.
For example, first-time buyers looking to get off the mark in London will pay no more than £450,000 for their property. Find out more about starter homes.
Buy a house with a friend
For many single people, the impossibility of buying a house has become too much to bear. As a result, many are choosing to take out mortgages with friends who are in a similar situation. Such an initiative is a great example of how young people are taking matters into their own hands. A recently-published article from the Guardian offers a very helpful insight into this new phenomenon.
Research potential areas
It may well be the case that, as a first-time buyer, you will need to compromise on location. But don’t panic, because this can actually turn out to be a positive thing, especially if you find an area which is on the up. This is a great way to jump onto the property ladder, and first-time buyers will often attempt to find a cheap property which is predicted to increase in value because of planned developments in the area.
Walthamstow, Leytonstone, Woodford, Hackney, Redbridge. These are all areas which we have had a great deal of experience with over the years, and their rising popularity represents a unique opportunity for first-time buyers.
Look for an opportune time to buy a property
Our Walthamstow price tendency article last month showed just how much prices in certain areas can fluctuate, and these patterns can often be crucial when it comes to grabbing a great deal before it stops being so great. As a first-time buyer, if you can time your purchase well, then you may be able to get the property you are after for much less than you thought you would have to pay.
We hope this has helped
There is no hiding the fact that the current real estate market is not exactly first-time buyer friendly. However, at Waltham Estates, we know how important it is that first-time buyers have the chance to own their own home. This is why we offer the most reasonable fees for our services, and why we make it our mission to know everything there is to know about the areas we operate in. After all, knowledge is power, and we have used our vast knowledge to help many, many first-time buyers find their perfect property.
We hope you have found these tips helpful, and as always, don’t hesitate to get in contact if you have any questions!