Everyone has heard of the bank of Mum and Dad. A first-time buyer without any assistance isn’t easy for a majority of under 30s. It is estimated that more than 60% of first-time buyers receive some financial help from the older relatives.
Most parents and grandparents will need to raise the funds, they may downsize, re-mortgaging their home, guaranteeing the mortgage, or releasing equity from investments they have. If you are looking to help your children get onto the property ladder, check out these top tips for buyers and providers of the finance…
1: When looking for property think about potential lodgers, maybe family, partners, tenants, and in the future, children — a one-bedroom property will be limiting. If possible, try and buy a 2+ bedroom property if affordable, as the additional rooms could generate an income by way of a lodger or be very handy when relatives and friends come to stay. Even though a purchase should make good financial sense in the long-term, it is essentially a home.
2: You will have a certain amount of money available, however, don’t feel compelled to spend it all! If you find a perfect property that comes in under budget, seriously consider it.
3: Look at the financial obligations, things like outgoings and maintenance – council tax, service charges, utilities, repairs etc. If you’re a first-time buyer, these things will be un familiar to you.
5: Good transport links are important, don’t just think about your current place of work. You will probably end up changing your work location several times in the future.
7: Don’t fall for bells and whistles – gyms and spas, cinema rooms in developments might seem like a good idea now but you will end up paying for these services in your service charge.
8: Check out the area — have a walk around locally in the evening this should enable you to get a good feel for how ‘safe’ it is and the types of people who live there.
9: If buying a leasehold property, consider the length of the remaining term. As time goes on the value of the property will be affected by the diminishing term, this could make the property more difficult to sell. Leases are usually long-term, often 90 years or 120 years and can be as high as 999 years – but can be short, such as 40 years.
If you are looking for a first-time buyer property, you can view our current listing here.