by Jasmyn Preston on October 22, 2016, in Knowledge • No Comments
Unless you are living in a tent in someone’s front room; you are probably paying around half of your salary every month to pay for a room in a shared house. In this prolonged “University Halls” experience you may think it is hopeless to get onto the property ladder. Fear not local London dweller; these tips and tricks are the solution that you need.
Live at Home
If you are one of the lucky ones who have Mum and Dad around the corner, then living with them and paying minimal rent will allow you to save the colossal amount that you will be required to save for a London deposit.
Buy a Boat
This up and coming new trend is an inspired solution. In a time when rents are sky high, UBS states that “young professionals have side stepped the problem by living on the Thames now that the ground is circa £1,000 per sq. Ft.” Buying a canal boat for around £10,000 can mean that you don’t have costly monthly outgoings and you can start to save.
This is a government-backed solution that enables you to pay part of the deposit, pay part of the mortgage and part rent. When it comes time to sell, you get the same percentage of what you paid in. Not an ideal solution but in the long term it will make a difference as your mortgage costs are viewed as an investment.
Help to Buy ISAs
Fancy getting £3,000 for free from the government? Then start saving. There are two government backed Isa’s hitting the banks. The first, you receive an extra £3,000 when you save £12,000 yourself. Not so useful if you are looking to buy in London. The catch? You have to pay in £200 instalments monthly apart from the first £1,200. The Spring 2017 ISA so called the “Lifetime ISA” is designed for your first home or pension. You can deposit as much as you like and receive an extra 25% of the amount that you save up to £32,000. The catch? You cannot withdraw this money unless you are buying your first house or for your pension.
London Help to Buy Schemes
For selected new build homes, you can put down a measly (ahem) 5% deposit and receive a government equity loan for up to 40% of the price. Although this doesn’t help to pay off the seismic mortgage and please don’t glance over the word LOAN, it is still a decent plan.
Bank of Mum and Dad
My personal favourite. Although this bank only requests that you come for dinner more often and give them a few grandchildren, it is the most exclusive bank that asks for DNA to test for familial links and shared heritage.