Buying property as a first-time buyer can be a daunting experience. But, if you have the correct information, it can be the most fulfilling endeavor.
The current hype on the shift of property market preferences can be misleading for first-time buyers who have no clue what to look out for when purchasing a property. Multiple factors impact the property market in London, and some of the indicators to consider as a first-time buyer are government incentives, demand, price, mortgage, interest rates, and green spaces.
First-time buyers fret when faced with challenges because they lack adequate information on financing—having all the information and proper financial preparation helps in making better decisions. Help to Buy is one of the incentive funding available for first-time buyers. In London, first-time buyers can borrow up to 40% of their property value, capped at £600,000.Buyers also have the option of shared ownership, which requires less mortgage and deposit. Recently, the Bank of England increased the interest rate from 0.1 percent to 0.25 per cent, which is a big blow for people planning to purchase property using a mortgage.
Experts have emphasized the rising demand for property in specific areas following the COVID-19 lockdown experience. Many first-time property investors will find themselves purchasing property in these areas without carrying out proper market research, making a grave mistake. Some things to consider: the prices of the property; given the high demand in these places, the prices might be too exaggerated for first-time buyers. Things like greenspaces and other provisions that concur with sustainability and necessary considerations that contribute to the value and appreciation of the property. There are many fairly priced properties with green spaces and lifestyle amenities sought after by buyers.
Many buyers are flocking the market, including first-time property buyers, taking advantage of the current demand, affordability, and future projections on the profitability and sustainability of the property industry. Because of too much influence and hype, first-time buyers are not taking their time to gather enough information on financing and other relevant issues to make wise decisions. First-time property investors need to do a thorough evaluation and market research.