Stamp Duty Rates
for First Time home buyers
Stamp duty rates for first time buyers ended in 2012. It
was great news when in March 2010 The government scrapped tax for around 90 percent of first-time homebuyers - for the next two years, first-time homebuyers will be able to buy properties worth up to 250,000 pounds without paying stamp duty.
Reuters provides more details on the Stamp
duty for first time home buyers and there are latest
Stamp Duty Rates maintained at the Home staging networks web
First time home buyers -
good start when buying a home
First time home home buyers
are sometimes abbreviated to FTB by those offering services, financial products and
advice, so look out for this on your file notes!
Being a first time
give you a strong position when negotiating property prices. For a
property seller or their estate agent you are the ideal buyer as
first time buyers don't involve in a chain. Chains can fall apart at the last minute leading to
the sale collapsing. First time buyers are usually in a position to move quickly, which can be very attractive to sellers.
As a first time buyer the sellers know that the transaction will be straightforward with less likelihood of problems. Use this to your advantage when negotiating a
Wikipedia offers a comprehensive facts for first-time
home buyers and things to consider before purchasing their first property, such as how much they will be able to borrow, how much they can afford to pay each month, how much initial cash they will need for stamp duty, solicitors fees and a deposit, which sort of mortgage
time home buyers - Mortgage deposit deals
Despite the latest news
of lower lending limits for first time buyers and higher deposits
for mortgage deals there are some companies, particularly Developers
and Builders who are digging into deep pockets to provide good deals
and offers. Taylor Wimpey Homes for instance have offered first time buyers
who have a 5% deposit that they will match the mortgage deposit
time home buyers - conveyancing Advice
Get recommendations or
good advice and shop about for a Conveyancing Solictor. There are
good online deals but consider the value of a local conveyancing
solicitor who has local knowledge and has built up relationships
with local estate agents.
Times gives a list of handy tips for First time buyers buying
and selling property and says that First-time buyers can expect to pay a deposit of at least £20,000, according to Abbey.
They suggest setting up a standing order to transfer money into a savings account every
month, making the most of your annual Isa allowance in which you can invest up to £3,600 a year into a cash
ISA without paying tax on the interest.
time home buyers - Money saving Home buying advice
The biggest weapon in a first-time
buyer's arsenal is knowledge about the
home buying process and an awareness of what's going on in the property
market according to This is
Money whose mortgages and homes section is packed with advice for first-time buyers and carries the latest news and up-to-date features, which can help you achieve the dream of owning your first home.
hope that these Tips and Advice for First Time Buyers have been
useful for you! If so please comment here or share this article with a friend on
your facebook and visit again soon!
latest for first time buyers:
Bank wants stamp duty to be paid by sellers, not buyers
A new reform of stamp duty would mean that the tax would be paid by sellers and not buyers.
The call for reform has come from HSBC which found that 85% of non home-owning young adults (18 to 34-years-old) want to own their own home, but only 19% of the 85% expect to be able to do so within the next five years.
And almost half - 45% of aspiring home-owners - do not ever expect to be able to purchase.
In its report, First Time Buyers: Roadblocks and Ways Forward, HSBC found that the younger, 18 to 24-year-old age group was the more optimistic.
Around 22% expect to purchase within five years. However, 21% do not expect ever to be able to purchase.
For each of the past three years there have been around 200,000 first-time buyers, according to the Council of Mortgage Lenders. This is less than half of the 400,000 to 500,000 of those recorded in more typical market conditions, before the
credit crunch hit.
The key reasons holding aspiring home owners back from house purchase are:
"raising the required deposit"
"insufficient income to support the mortgage."
"concerns over unemployment"
"concern over future falling house prices"
The current average FTB house price of £136,842 is 6.6 times a young single person's average earnings of
£20,654 (source: Nationwide Building Society and National Earnings Survey).
In order to afford a 90% LTV mortgage, a typical FTB would need to earn
£30,800 - 49% higher than current average earnings for a single young adult.
Even then, a 10% deposit of £13,684 is equivalent to 42% of this higher annual income, a major impediment to home purchase without external financial assistance. It is therefore not surprising that 84% of young FTBs are buying with
assistance, mostly from parents. This compares to 38% in 2005, according to the
Stuart Beattie, HSBC's head of mortgages, said: "Our study proves that the aspiration to be a home owner continues to be exceptionally strong. Over 80% of young non-home owners are aspiring to buy a home but are being prevented from doing so due to lack of affordable
"The key to helping buyers back into the market is to help them obtain the cash deposit that responsible lenders require before granting a mortgage.
"To this end, both government and private sector interested parties need to come up with innovative schemes to help aspiring FTBs."
The report says that government-supported initiatives have helped around
22,000 FTBs a year in each of the last three years.
HSBC is also suggesting that Stamp Duty should be applied to sales, not purchases. This would mean that FTBs would be excused it when the £250,000 stamp duty holiday ends next March.
The bank also suggests that 95% mortgage lending could be deemed prudent, if it could be backed by insurance to cover both lenders and borrowers.
Source or original article Estate Agent Today eta 4-4-2011