Subscribe Feed (RSS)Elbow Grease Is Required To Move Up The Property Ladder In This Market
March 3rd, 2009 by Karelia | Filed under House Prices.Musings of a London Property Finder
Boris Johnson’s list of measures announced today to prop up the bottom of the housing market and the construction sector bode well for the latter but surely he is missing the point. First-time buyers need to accept that if they don’t have the funds to buy in the area they’ve always lived in, they need to buy a home in need of work in an area they can afford, which is likely to improve or hold it’s value. If they buy at a price which will give them a big enough margin to make a little bit of money they will be able to move onwards and upwards in the future.
Of course everyone wants to live in the best areas, but buying a new build, even with a discount, isn’t going to help them make money and move on. A one bedroom flat in a new block with a shiny new kitchen, wood flooring throughout and big shower will be of no help if their situation changes. What happens if you have children or need to start working from home? With stamp duty at 3% for properties over £250,000, owners on low to average incomes need to save up to pay the stamp duty if they ever want to move and with little or no increase in the value of their home, they may be homeowners, but they will be well and truly stuck.
Boris and co should be lobbying to increase the stamp duty thresholds and trying to instill a work ethic and sense of entrepreneurship about property into the young so that when the market starts to recover, said first time buyers will be able to enjoy the fruits of their DIY and embark on the next step up the property ladder. Television programs showing amateurs paying over the odds for sub-standard property and then wondering why they make a loss have a lot to answer for. But those heady days for vendors have gone and canny first time buyers should be entering the market now and going head to head with investors to pick up a bargain property in need of TLC.
Those who follow Boris’ lead and buy new now, and need to sell in 5 years time, will sell for the price they paid if they are lucky, with only a few thousand paid off the mortgage. Still, for security and boosting savings, it beats renting I suppose. For further help in finding the right property for you call this London Property Finder
Tags: First time buyers, London Property Finder, Time To Buy New Build
