Author Topic: First time buyers trapped in their first homes  (Read 2939 times)

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Philofacts

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First time buyers trapped in their first homes
« on: August 08, 2011, 11:43:03 am »
Those that already own their own home sometimes called "middle-movers" are finding they are trapped in their existing homes unable to sell so they can move to a larger home. The lack of first time buyers able to get a mortgage, combined with falling property prices and negative equity are making it more difficult for people to move when their growing families need more space

A survey by Santander claims that 2 million are now stuck on the first rung and are unable to move within the next two years. The survey also showed that 25% of these need the value of their current home to increase before they can even consider buying another because they do not have enough equity to take with them. Many people are now staying much longer than the average five years buyers normally stay in their first home.

Those trapped in this trap could consider:
1) Part-exchanging your current home for a brand new home with one of the many house builder's part-exchange schemes.  Be aware some of these come with nasty conditions!
2) Sell your home to a company. There are several companies that will buy your home quickly without the worry of a chain. The main disadvantage is the price they pay.  A home on the market for £160,000 was reduced to £150,000 and eventually sold buy the owners to a company for just £113,000.
3) Renting out your current home. This enables you to move to a larger home especially if you rent, as another mortgage will not be required.  Once the market recovers, you can then sell your current home and buy another, in the meantime the rent you receive should cover your mortgage and costs.

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Banjo

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Re: First time buyers trapped in their first homes
« Reply #1 on: August 11, 2011, 09:51:52 am »
All of those three "deals" will cost you and rely on desperation.

Tim Fee Snagging Inspector