As you know, we rent our house but we often keep an eye out for properties to buy in our area. We would be first time buyers and we are always considering the options available to us. There are so many different options out there for first time buyers nowadays and I thought I would tell you a little more about them and how they can help you and me.
Shared Ownership
Shared ownership is a form of low cost ownership which enables first time buyers to combine buying with renting. There are both Government backed and privately operated schemes available and can be available through housing associations.
A friend of mine actually has shared ownership of her flat and it was definitely the best option for her as she couldn’t get a deposit together that would cover the whole mortgage. This way she managed to part own her flat and had to find a smaller deposit.
Rent To Buy
The rent to buy scheme is something I have known about for a while. It is designed to make for a simpler transition from renting to buying through subsidised rent. With Rent to Buy, you rent a newly built home at approximately 20% below the market rate for up to five years – the time period varies due to each property. During this five years you have the option to buy and once the five years are up, you either have to buy or leave.
Shared ownership definitely speaks out to me and I’ve been finding out more about it via Gentoo, a UK social enterprise who work to improve the Art of Living as they offer some of these options.
These are just a couple of the options available to first time buyers and they are definitely something to consider if you are looking to buy a property in the near future.
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