5 Things Only First Time Home Buyers Will Understand
Or: How I Learned To Stop Worrying And Love The Bomb
For many people, the prospect of owning their own home is something that can seem totally unattainable. As we sit and listed to constant debates surrounding a supposedly recovering economy, no matter which way the scales seemingly balance house prices are often placed too high and home ownership is out of reach for most.
What is not obvious at first is that the struggle of saving towards often a 10% deposit is not necessarily required when looking to take your first steps on the property ladder. Indeed over recent years there has been a number of Government backed schemes aimed at helping people buy a house without the full up front contribution; these include the First Buy Scheme, New Buy Scheme, and the recently announced lifetime ISA. There is also a range of different initiatives being offered out there by social enterprise and housing associations. Not least of which is the shared ownership being offered by L&Q London Housing Association.
When speaking to many would be buyers L&Q have found that there are many misconceptions around the idea of shared ownership. This varies from the notion that it means you do not own the property you are living in, or that you will be required to share your home with other people. In actual fact in means neither of those things, as the scheme enables people to take out a mortgage to cover ownership over a percentage of the property at least 25% - while paying rent to the housing association for the remaining percentage. The rental fee is often subsidised to improve affordability, and because the mortgage is smaller your initial deposit is accordingly reduced. Over time you are then given the option to increase your ownership percentage as and when you can afford it.
There are of course many different options out there for people, and the shared ownership option is by no means suitable or right for everyone. However it is certainly worth bearing in mind, and offers a real alternative to extortionate private rentals, and a solution to the stumbling block of saving for a big deposit.
For more information on L&Qs shared ownership scheme head on over to their website.
Regardless of how you do it, buying your first home is as nail bitingly nerve racking as it is wonderfully exciting. Even after spending hours on devising budgets and checklists to triple check everything is in place, there are always little surprises along the way. We take a look at 5 Things Only First Time Home Buyers Will Understand