Top 5 First Time Buyer Benefits
Thinking of getting yourself on the property ladder? The prospect of buying your first home can seem a little daunting, however there are certainly many first time buyer benefits that you might not be aware of. These help to relieve some of the stress (and financial burden) of making your way into the property market. Below are just a few of the most important first time buyer benefits that are helpful to know about:
One of the main advantages of being a first time buyer is that you’re not tied into a chain. This means that you don’t have to wait for your current property to sell before you can move into the new property you’re buying. In other words, you’re not reliant on anyone other than yourself! This gives you a big advantage over buyers who are reliant on a chain, making you more appealing to sellers who have a tight deadline and need to exchange contracts quickly. With just one property to deal with, it also makes the paperwork a whole lot more straightforward.
Stamp Duty Relief
Stamp duty is a tax that buyers are required to pay when they buy a house or flat, on top of the money that they’ve paid for the property itself. If you’re not a first time buyer then you’re required to pay stamp duty on any property worth more than £125,000. However, if this is your first step onto the property ladder then you only have to pay stamp duty on properties that are worth more than £300,000 - just one of the many financial first time buyer benefits. First time buyers paying for a property between £300,000 to £500,000 will pay stamp duty at 5%, which is a reduction compared to other buyers.
Access To Help to Buy Scheme…
One of the main first time buyer benefits that you’re likely to have heard of is the government’s ‘Help to Buy’ scheme. This is an equity loan scheme that can help first-time buyers purchase a new-build property with just a 5% deposit. The scheme enables you to borrow 20% of the purchase price (40% in London), which will be interest free for 5 years. The maximum Help to Buy price cap varies based upon whereabouts in the country you choose to buy.
…And Other Government-Backed Schemes
The financial first time buyer benefits don’t stop with the Help To Buy scheme. There are other schemes that can help too. These include:
First Homes Scheme: Provides the opportunity to purchase a property for 30-50% less than its market value.
Shared Ownership: You buy a share of a property (usually 25% to 75%), and the local council or housing association buys the rest.
Lifetime ISA: You can open a lifetime ISA at any point between the ages of 18-40. You can put in up to £4000 each year and the government will add 25%. This enables you to make substantial savings to put towards buying your first home.
As we mentioned just a second ago, one of the most significant first time buyer benefits is that you’re free from any complicated or messy chains. This means you’re ready and set to move in straight away, without the need to wait on anyone else. This gives you more flexibility, whilst making the buying process from start to finish a whole lot quicker. This reduces the likelihood of any dreaded delays or complications that you see in some buying processes.
Clearly, there are a number of benefits of being a first time buyer that make it an exciting milestone to look forward to. When you do buy that first home, and aren’t sure what the next steps are, don’t hesitate to give Hackworthy a call. We have more than 45 years in removals experience, ensuring we make every move as stress free as possible - this means you can focus on the excitement of moving into your first home rather than feeling stressed!