• Home
  • First Time Property Buyer Schemes

First time property buyer schemes

Property developers are still offering great incentives to sell unwanted property.

Moving home is an increasingly costly and nerve-racking business. Stamp duty, capital gains tax, survey costs, estate agent fees and an uncertain property market, not to mention global financial instability all mean that are lot people are choosing to stay put. Spare a thought for those first time buyers struggling to gain a foothold on the property ladder.

Quick survey: what percentage of homeowners do you know that bought their property off their own backs? As in, with money they had earned themselves? Not many, you probably say, not many at all.

It is rare that people under the age of 30 have managed to save the money they need to put down a deposit on a house. Despite the global financial meltdown, house prices are not dropping. We have a situation where the forecast is exceptionally gloomy. Young people find that, despite working as hard as they can, they are unable to buy their first home and have to continue to throw away money in a rental situation. That is not right, surely? What is the government doing to rectify this outrage? Well, actually it turns out they are doing a number of things and backing a number of schemes to help first time buyers.

These schemes, such as FirstBuy with Barratt Homes are designed to give priority to first time buyers, social tenants (council and housing association tenants), private renters and other locally defined priority groups. The Firstbuy scheme offers a potential deposit of four per cent as well as reduced mortgage payments. There are many other similar schemes around, but the first step is to speak to your bank or building society about eligibility and what schemes are available in your area. It could also be that you are entitled to eligibility because of your profession: teachers, nurses and members of the armed forces, for example, are entitled to specific certain allowances.

What matters in the housing market is the buying and selling of property. In today’s market, people are incentivising the selling of unwanted property because this will generate the buying of wanted property. Property developers are offering some terrific incentives and schemes to sell unwanted property. Many of these entail various strategies of lowering and subsidizing the initial deposit whilst many new housing property developers partner with a government equity loan scheme.

The idea of part exchanging your home is a proven one and, if your circumstances and eligibility are suitable it is often a pleasant prospect. If you are anxious to move, or your house simply is not selling it could well be worth considering a part exchange scheme. The idea is that, in a new housing development, the builders will allow some home buyers to trade in their existing home as part payment towards a brand new one. The process removes any need for a property chain, with the difficulties and delays that provides, and as such it considerably speeds up the transaction process and removes various estate agent fees.

Puzzle Corner