By Karen Keeman, Editor, Your New Home
The property market has never been so newsworthy.
Not a day goes past without some mention of the impact the credit crunch is having on house prices and the effect it is having on first-time buyers. But far from being doom and gloom, now is in fact an excellent time to purchase your first home.
To put momentum back into the market, many lenders are looking at ways to reduce mortgage rates and introduce new products to help first-time buyers. Furthermore, the overall levelling of property prices has meant that income multiples are returning to a more traditional and sustainable three times a buyer’s salary.
If you still think that buying a home of your own is out of your price league, then take a look at shared ownership options, which offer a way of building up a stake in a property but without paying 100 per cent of the price.
For example, many deals allow the purchaser to pay for 75 per cent of the price upfront, meaning that obtaining a mortgage to cover the cost will be much easier. They will then have a chance to buy the remaining 25 per cent equity over a number of years.
In fact, some deals enable buyers to purchase 85 per cent of the purchase price while still owning a full 100 per cent of the property. No interest or rent is payable on the 15 per cent deferred, which is paid back as 15 per cent of the property’s open market value at any time up to the resale of the property or within ten years. Check with your local sales advisors to find the best deal to suit you.
Developers recognise that many young buyers are desperate to get a home of their own, which is why they are offering a range of fantastic incentives to make purchasing possible. From paying legal fees and stamp duty to assisting with moving expenses, buying from a new homes developer opens up a range of opportunities that would otherwise prevent many first-time buyers from becoming homeowners.
So with plenty of great deals and a wide choice of property around, if you are a potential first-time buyer, grab this opportunity now while you still can.