Mark Homer, co-founder of Progressive Property, explains why people thinking of stepping onto the property ladder should try to get there sooner rather than later…
Why is Help To Buy a good option for first-time buyers who want to get onto the property ladder?
Help To Buy is a great option for many first time buyers as it allows them to purchase a house or a flat, often new and with a warranty. The homes are usually complete with flooring and almost everything needed to move in (bar furniture) and you can get this in some cases with a 5% deposit. This usually means that first-time buyers need to save for much less time, therefore getting on the housing market earlier and allowing them to build equity.
How have Help to Buy schemes helped to boost the property market?
Help To Buy schemes have helped builders to sell their schemes more effectively and at higher margins. This form of government support has allowed them to better plan sites, taking on bigger schemes knowing that part of the site will be quickly and easily sold.
When is the best time to buy your first home and take that first step on the property ladder?
As early as you know that you want to be in one place for more than three years! Stamp duty, mortgage and legal fees along with other moving costs need to be spread over the first few years to make the purchase worthwhile. Starting early and perhaps renting the property out rather than selling – once you have bought all the share – is likely to be a great long-term investment.
In the long-term, how can owning your own property be a better option than renting?
Long-term owners benefit from capital growth which comes as the value of properties increase over time. This creates equity – or the difference between the property value and your mortgage. Paying off the mortgage will allow you to live mortgage- or rent-free later in life, freeing up more money for a better life.