Advice for First Time Buyers from Greater London Properties
Our Greater London Properties team have put together some tips on making buying property for the first time easier.. read on..
If you want to get your foot on the property ladder in London, there are several important things to consider before settling on a house and completing the purchase. Here at GLP, we love helping people become homeowners, so we’ve put together some tips on making buying property for the first time easier, what to expect throughout the process, and any additional costs and fees to budget for.
Consider a New Build
While lots of properties in London offer stunning period features, a new build may be something that you are interested in if you prefer a modern style of home or want to avoid the common issues that sometimes arise with older properties. Along with this, developers are often targeting first-time buyers who can move in quickly without having to sell their current property first, so many offer equity loans.
Buying with Friends
Many first-time buyers will buy their property as a couple. But if you are single, saving up for a deposit and all the other fees involved with buying a property for the first time can be much harder. To combat this, some people have decided to buy with their friends instead. If you have a close friend who’s also interested in getting on the property ladder, you might want to consider getting a ‘tenancy in common’ mortgage, where you can each own 50% of a property.
Help from Parents
Two-thirds of first-time buyers in Central London manage to get on the property with support from mum and dad. While not everybody is in a position where they can ask their parents to help them out with paying a deposit, it’s always worth asking – you never know if your parents have planned ahead for this day and put some money aside for you. If your mum and dad can’t help with a deposit, they may be able to help out by acting as a guarantor for your mortgage, which can increase your chance of having your application accepted.
Shared Ownership Homes
Shared ownership schemes are a great solution for anybody who wants to purchase their first property on their own but would take years to save a deposit. With a shared ownership scheme, you can get on the property ladder with less since they allow you to start out by purchasing a percentage of a property while paying rent on the percentage that’s still owned by the developer. Over time, you can buy more and more of the property until 100% is in your name. The best part is even though you only own a percentage of the property, it’s still yours to do what you like with.
Property Auctions
If you want to get a bargain with your first property and are considering buying something that you can renovate and make your own, a property auction might be worth considering. However, this is usually only a good option for people with great DIY skills or enough money aside to hire professionals since most houses sold at auction need a lot of work and are impossible to sell on the open market.
Rent to Buy
If you’re currently renting a property in the capital, a rent-to-buy option might also be worth thinking about. This situation allows you to first move into a property as a rental tenant with the option to purchase the property once you are in a position to do so. After renting the property for some time, the deposit is usually much smaller compared to traditional buying. In most situations, the property price will be agreed on when you move in as a tenant, so even if it takes you a while to save up for your deposit, you won’t need to worry about any surprise increases.
Our Greater London Properties team are always on hand to offer advice and support for all our buyers and vendors. Feel free to contact any member of our sales team and we would be happy to help. Email our Sales Team or call us on 0207 734 4062.
Warm Regards