02 Buy

The Quickest Ways Onto the Property Ladder

  • It need not take years for you to become a homeowner
  • There are several fast routes to homeownership

It is a question countless people are often asking…

What is the quickest way onto the property ladder? What is the fastest route to becoming a homeowner?

It can take years to buy your own place – but that is not always the case.

This blog shines the light on 7 of the quickest ways to become an owner-occupier:

1. Right to buy
2. Right to acquire
3. Help to Buy shared ownership
4. Co-ownership
5. Gifted deposit
6. Quick deposit
7. Rent to buy

1. Right to buy

If you are a council tenant, you may have the “right to buy” – receiving a discount of up to 70% of the purchase price (but not more than £110,000) to help you with your purchase. 

The discount is generous – starting at 35% once you have been a tenant for 3 to 5 years.

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2. Right to acquire

The “right to acquire” is similar to the right to buy but applies to housing association tenants. 

The discount is not as big as with the right to buy and is between £9,000 and £16,000, depending on where you live in the UK.

3. Help to Buy shared ownership

Shared ownership, sometimes called part-buy part-rent, is where you buy a share of a qualifying property – from 25% to 75%.

Buying only a share of the property means you will pay less than buying the whole and so, all things being equal, you should be able to buy sooner than normal.

You can buy shared ownership property under the government’s Help to Buy shared ownership scheme.

Not everyone qualifies to buy – usually the entitlement to buy is restricted to first time buyers, key workers and seniors.

4. Co-ownership

Buying a property with someone else is another way to accelerate your property ownership journey.

By purchasing with a co-owner or co-owners, you reduce the amount you need to buy – both deposit and mortgage – making your purchase more affordable and quicker.

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5. Gifted deposit 

If you can cut out or reduce the need for a deposit, you will be able to buy faster than otherwise.

You should look for ways where your deposit, or a part of it, is actually or effectively gifted to you.

Examples include where:

  • You buy a new property and the developer provides you with a genuine discount on the market value which your lender allows you to put towards your deposit
  • You are given or loaned the deposit by a parent or other relative
  • You qualify for a bonus of up to £3,000 under the government’s Help to Buy ISA
  • You qualify for a low interest government loan of up to 40% of the purchase price under the Help to Buy equity loan scheme.

The last two examples apply to first time buyers.

Why become a homeowner (the many benefits enjoyed by homeowners)
Why renting is super stupid (rock solid reasons why you should buy not rent)
Easy home ownership (10 super-powerful reasons for homeownership)

6. Quick deposit

Another quick route to becoming a proud homeowner is to raise or save a deposit as rapidly as possible.

My book “Quick House Deposit: 50 Ways to Put Together a Deposit in 6 Months” focuses on raising a deposit at speed – exploring ways to boost your savings not just by saving but also by slashing expenditure and growing income.

You can raise a deposit fast by looking at all possible ways to do so – not just concentrating on a few ways that appeal to you.

QUICK HOUSE DEPOSIT:
50 Ways To Put Together A Deposit in 6 Months

7. Rent to buy

An unusual but viable way to fast homeownership is “rent to buy”. This is where you rent a property and at the same time negotiate the legal right to purchase it at a later date for an agreed price. 

You don’t legally own the property when you move in as a tenant, but in a practical sense you are the owner and will typically be free to work on, look after and decorate it as you wish.

Rent to buy is a great way to acquire the rights of a homeowner whilst legally a tenant.    

Conclusion

As prices in general become less affordable, it takes longer for the average buyer to secure home ownership.

According to some analysts, many of us will be in our fifties before we become owner-occupiers for the first time.

Nonetheless, as this blog reveals, there are several easily-accessible routes to quick homeownership.

If you are not a homeowner, try not to delay too long before taking advantage of them. With several of them dependant on the preferences of the current government, there is no certainty they will be around forever.   

Enjoyed this blog? Please share it with friends by clicking on the LinkedIn, Twitter, Facebook or Instagram icon on this page. 

Have you bought your first home using one of the methods explained in this blog? If so, which one – and was the process quick and smooth? Please leave your comments or observations below.

You may also find the following blogs useful:

Buy now laugh later (a look at the pluses of buying when house prices are falling)
Two is better than one (what you must know when buying with someone else)
Buying a flat? What to consider (15 things to look at when buying a flat)

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Dalton Barrett
Rebel Property Coach

Please follow me on Twitter @Dalton1London
You can find me on FacebookInstagram and on YouTube
Please link up with me at LinkedIn

My website is: www.rebelpropertycoach.com

 

 


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