Tips for climbing property ladder
Getting on property ladder
RECENT figures from the BBC have shown that average house prices in Newham have reached �223,128.
They represent an increase of 11 per cent from the previous year. However, a London based housing association has said there are ways of making it easier to climb the property ladder.
Notting Hill Home Ownership has issued a number of tips designed to help first time buyers in east London where many are already buying properties through shared ownership schemes as increasing numbers of such projects becoming available in the area.
Mark Vaughan, managing director of Home Ownership, said: “It is a difficult time for buying property in Newham. As well as the usual financial challenges that accompany buying a home, house hunters are also having to deal with an uncertain economic climate and mortgage lenders putting further restrictions on their products.”
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He suggests a number of tips that will help first time buyers get a foothold on the property ladder.
*Planning your budget and ensuring you have enough money saved to cover all the costs involved with buying a property is essential. Make sure you’ve budgeted enough for those additional costs such as legal fees and stamp duty, and don’t hesitate to contact an Independent Financial Advisor (IFA) to discuss how much you can afford.
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*Having a good deposit in place is essential for anyone wanting to buy their first home – and the bigger the deposit you can secure, the better. However, saving for a deposit can be tricky, and for some first time buyers it may seem like an impossible task. Making small changes in your day-to-day life (cutting the number of nights out, or taking a packed lunch to work rather than buying), can have a huge impact on what you’re able to save every month.
*For those would-be buyers that are renting, it might be cheaper to consider a house-share or moving back with parents for a while. Not only will you save on your monthly outgoings but it might also give you that extra bit of motivation to get out there and get your foot firmly on that ladder!
*Buying – whether on the open market or through shared ownership - with friends will not only ease the financial burden, but will often mean your borrowing potential is instantly boosted.
*Designed to help buyers make their first property purchase, the New Build HomeBuy scheme enables people to buy a share of the property that they can afford, usually between 25 per cent and 75 per cent, and they then pay below market rent on the rest. This means that you can often pay a deposit of as little as �10,000 compared to the national average first time deposit of �34,000.
*Location is often considered to be one of the most influential factors when choosing your home. However, while it is important, it can also have a massive impact on price, so buyers should make sure they consider neighbouring areas.