publication date: Mar 9, 2012
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
Should First Time Buyers Take the Plunge in 2012?
First Time Buyers Home 2012
Many first time buyers feel they will never be able to get into the property market, particularly those in London and other expensive areas, where affordability is a very real issue. To make your first purchase, you will typically require two incomes, rather than one. But, although even this may seem a hard task, there are shared ownership deals available for people on joint incomes up to £60,000. So if you really want to buy, rather than rent, there are incentives available through affordable home ownership that are certainly worth exploring.
Alternatively, you may have to consider buying in a cheaper area first, as previous generations have done, making ‘savvy' purchases until you've created enough equity to move into the area you want. For example, Peterborough is around 45 minutes from London's Kings Cross Station, but prices are substantially lower than in other commuter areas, with an average two-bed property costing around £80,000. Another, more drastic option is to consider moving to a new, cheaper area where you could live and work, which would allow you to purchase a property and still be within a few hours by car/train of friends and family, close enough to meet during weekends or for the odd evening.
The critical considerations for first time buyers include:-
- How long are you going to stay in the property for?
- How safe is your job?
- What would happen if you became sick?
- What level of deposit can you raise?
- Are you eligible for the government first time buyer schemes?
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