How to buy a home in 2021

While we’ve all spent a considerable amount of time in our homes this year, maybe its got you thinking about getting a new one. And if this is looking like a plan for 2021, then you’re in luck, because this year there are plenty of schemes to jump onto that could make that move onto the property ladder an easy one and an affordable one.

Stamp Duty

If you haven’t already heard, the stamp duty holiday has been in full swing since June 2020 and it is one of the reasons you may notice that all the houses up for sale are flying off the market in no time at all. So what is stamp duty? Basically, stamp duty is a tax you pay on the land of the home you are buying. It’s worked out like income tax in that over a threshold you pay a percentage of tax on the property’s value.

The holiday means that you will pay no stamp duty at all on any property under the value of 500,000. This could save you a whopping 15,000 which could really help especially if you’re planning on spending the money on renovating the property or on a few furnishings for when you move in. This also goes for shared ownership homes where you could get a lovely shared ownership London home, without paying a penny on stamp duty.

Help to Buy

This scheme has changed a little in 2021 so its important to be aware if you’ve been toying with the idea of going through help to buy. So what is Help to Buy? Help to Buy allows you to put down a 5% deposit and take on a 20% no interest equity loan meaning you won’t have to worry about the loan until 5 years on when the interest rate rises to 1.25%. So with a 5% deposit, a 20% equity loan on the property, you’ll only have to obtain a mortgage worth 75% of the value of the home.

This can be super helpful if you’re struggling to get the full amount on the mortgage or you simply want to have the pressure off when it comes to buying your first home. Help to Buy is now available on homes up to 400,000 in London and these price caps differ from region to region depending on the average house prices. It is also, now, only available to first time home buyers making this scheme a little more exclusive but with plenty of benefits.

Shared Ownership

This scheme is great if you’re looking to ease yourself onto the property ladder in less time and without the hassle. Whether you’re looking at shared ownership Surrey or Shared Ownership Kent, there’s lots to gain from buying your home with shared ownership. The scheme essentially allows you to part-buy, part rent your home while paying a small deposit and obtaining a manageable mortgage. Besides, you could also look for co-op homes, where you would be one of the building’s joint owners. You’ll know your neighbors because the lengthy approval process means less turnover, and co-ops rarely allow sublets. Even if you’re not on the board, you’ll have a say in how the building or complex is run as a shareholder. Hence, buying a co-op may not be a bad idea at all. Additionally, co-ops are often much cheaper than market rentals because they operate on a break-even basis. They are also more stable because most cannot be sold.

You can also often buy more of your home over time allowing you to move up the property ladder without actually moving anywhere. You can buy homes everywhere from shared ownership Croydon to shared ownership West Drayton and from city apartments to bigger family houses, a move with shared ownership in 2021 could be a great way to start this year afresh and love the home you’re in.

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