by Mark Johnston
The property market has a gloomy outlook at the moment for the first time buyer, however when it comes to new build properties there are a few schemes, incentives and interest free loans becoming available that may bring rays of sunshine in to the gloomy property forecast.
Most of Britain’s largest property developers are now coming up with a range of interesting incentives designed to attract the first time buyer to affordable newly built houses.
Generous incentives are on offer to make new homes particularly attractive for first time buyers struggling to get their foot on the ladder.
Developers such as Pentland homes and Taylor Wimpey have suggested they may be prepared to pay half of the deposit buyers need to gain a mortgage, providing that the buyer can pay the other half. Some developers may also help with the stamp duty or even offer a certain amount of cash back after moving in.
There also many schemes that allows the buyer to purchase parts of a property such as shared equity schemes or shared ownership schemes. Many of the major developers have these schemes such as: kick start from Bloor homes, dream start from David Wilson homes and head start from Barrett homes.
The difference between shared ownership and shared equity schemes is simply put, shared equity schemes mean that the buyer owns 100% of the property, but only initially pays 80% with the developer paying the other 20% via an interest free loan, which the buyer pays back at a later date.
Shared ownership is a little more flexible allowing buyer to purchase smaller percentages of the property, therefore making mortgage payments lower. However with this scheme a rent is also payable on top of the mortgage, but its level is regulated and is always much less than a standard rent.
A brand new home is a real fresh start and rooms can be decorated to suit individuals needs as they really are a blank canvas. Most new homes come with all the latest fixtures and fittings and many also come with en suite facilities for at least the master bathroom. Buyers can also ‘haggle’ for extra bonuses such as wood flooring through out, carpets and specific tiling in bathrooms and kitchens.
With buying a new build buyers can also increasingly count on the property coming complete with a fully fitted kitchen and lots of developers also include white products such as fridge freezers, dishwashers and washing machines as part of the deal.
A major selling point with new builds is that developers are very aware that on of the most important considerations for buyers looking for a home is the location and therefore they are very careful about developing on land that is close to all local amenities.
Nightmarish property chains are also not a problem, so there is also no need to wait for previous owners to leave. Therefore once buyers and developers agree on a completion date there is nothing standing in the way off moving in.
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