With London house prices set to increase again this year, buying a house or even getting a foot on the property ladder can seem daunting. A lack of supply means it’s highly likely they will further increase. However, 2016 may just be the year of the first-time buyer with government schemes such as Help to Buy enabling more first-time buyers to move on and up the property ladder. Here are some tips and advice on the matter.
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Don’t Overlook Any Areas
It’s important not to dismiss any areas right off the bat. There are still some areas that are lower in price and have great transport links to the city. Be open – just because an area isn’t a hot spot, doesn’t mean it is not the right location for you. Think of untraditional but up-and-coming areas such as Croydon, Barking and Dagenham or Elephant and Castle. According to The Land Registry, Barking and Dagenham is the cheapest borough in London with average house prices of £288,809, followed by Bexley at £297,507.
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Be Realistic
You may not get the property of your dreams the first time round. It may need some refurbishment and touch-up but when the market picks up again, you can sell or alternatively rent it out when you move to your perfect house. It is equally important to be realistic with your timescale, as buying a house can take longer than expected. The whole process of buying a house can take up to 6 weeks or more.
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Think Thrifty
When saving for a house, every penny counts. Try to devise some ways to save extra cash. It can be something as simple as making your own lunch or coffee instead of buying it in a café. You may also have to eliminate extra expenditure such as satellite TV and club memberships.
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Family and Friends
You may want to consider buying a place with family or a trusted friend. A lager budget means a larger house and reduces the financial strain of buying your first house. You can sign a Declaration of Trust so you know how things are divided up and who owns what. It is vital to keep all the necessary documents to avoid any future problems, should one of you want to sell or move away.
Family remains the most common way for people to get a foot on the property ladder. According to The Telegraph, about 57% of parents who have children between the ages of 20 and 45 have contributed to their children’s property or intend to.
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Budget for Your Buy
Other than the cost of your house you need to factor in fees such as mortgage arrangement, stamp duty, surveyor and valuation fees as well as removal costs and furniture. Make sure you have informed and accurate prices when estimating your costs so you don’t under-budget. A study by Aviva revealed that up to three quarters of first-time buyers underestimate the cost to get on the property ladder.
When moving make sure to choose a certified professional removal service such as Movago.