While we’ll all feel glad to see the back of 2020, 2021 may actually be one of the best times to buy a home, whether you’re moving up or down on the property ladder or it is your first home.
Stamp Duty Holiday
If you haven’t already heard, the chancellor announced in July that you won’t have to pay stamp duty on a property at all until March 2021. This is great news for first time buyers and property owners alike with savings of up to £15,000 to be made. So what is Stamp Duty? Stamp Duty is a tax you pay on a home over the value of £125,000 if you already own a home or over £300,000 if it is your first home. Like income tax you pay it over the threshold and this is 5% up to the value of £500,000. However with the new stamp duty holiday you won’t have to pay a penny if the home you’re buying is under the value of £500,000. After this you begin paying 5% but with a great deal of cash to be saved and spent on a new kitchen maybe… getting your offer in before the deadline could really seal the deal for your house buying dreams.
Another Scheme that you may not have heard of and could really help you find your feet on the property ladder is shared ownership. Shared Ownership is where you start by buying a share in a home this can be between 25%-75% and you pay a mortgage on just this portion. This is great news for anyone looking to take advantage of the stamp duty holiday but who might not have their credit score or deposits savings quite ready for the deadline. The scheme allows you to staircase, meaning you can buy more of your home over time and reap the benefits when you come to sell. As a neat stepping stone to owning your first home this could be what your 2021 needs. And with these homes being particularly sought after in the South East with the likes of houses for Sale in Harrow flying off the shelves and beachy shared ownership in Brighton making waves on the property market, this trick might just be what you’ve been looking for.
Another positive that’s emerged from the shipwreck that was 2020 is the 5% deposits. We all know as first time buyers the biggest hurdle is always the deposits. And since you’ve probably been living with mum and dad for a good few years now to save up that kind of cash, a 5% deposit should be music to your ears. Not only will it cut the time you spend saving but it also means you can get on the property ladder and nab the stamp duty holiday before March 2021 even if you thought you didn’t quite yet have the funds. So smash that piggy bank and see where 2021 could take you.
So whether you’re quite sick of the four walls you’ve spent the majority of 2020 in or you can’t wait to get just a little bit of space from the family that you’ve spent a good 6 months being hunkered down with watching netflix till your eyes go square, getting on the property ladder in 2021 is a real opportunity like no other. So have a browse at propertybooking.co.uk to find your favourite shared ownership home, start counting your pennies and make sure you don’t miss out before 31st March 2021.