Government’s new FirstBuy scheme sounds like good news. Is it?

For those who don’t know, FirstBuy is a new shared equity scheme, jointly funded by the Government and the construction industry to the tune of some £500million over the next two years. Designed to help hard-pressed first time buyers onto the property ladder, it was first announced in the Budget, and last week it was revealed that over 100 of the country’s leading house-builders have already signed up. At the same time, a number of major lenders have agreed to offer special 75% FirstBuy mortgages.

How does it work? Well, as long as your annual household income doesn’t exceed £60,000 and you can find a 5% deposit, the Government and the developer between them will stump up a further 20%, thereby effectively enabling you to put down a total of 25% on certain new-build properties, up to a maximum price of £280,000. The 20% will be in the form of a loan, interest-free for the first 5 years, to be paid off in full when the property is eventually sold on.

So, isn’t this good news? The house-builders obviously think so. But then they would – because with a lot of unsold stock on their hands, they look set to be the main beneficiaries. The fact is, the scheme only applies to new-build properties in certain specified developments – and you can bet your life these will the ones that the industry hasn’t been able to shift any other way. That hardly bodes well for their resale value. In any case, this is a shared equity scheme – so when you do come to sell, you will have to pay back not only the original 20% loan, but also 20% of any increase in value.

No wonder the house-builders are so keen!

But does all this matter, if the scheme succeeds in reigniting the housing market as a whole? Sadly, it won’t: firstly, because it is only expected to help around 10,000 first-time buyers, which is a drop in the ocean; and secondly, because new-build transactions are “chain-free” – so they will do nothing whatsoever to help boost wider sales.

Other than that, it’s a cracking idea! 

What can help me to sell ?

Q.        My house is well maintained and (generally speaking) pretty clean and tidy. Is there anything else I can do to enhance its appeal when people come to view it?

A.            Basically, we’re talking about ambience. This can be very important, because whether we realise it or not, we are all sensitive to the “feel” of a property. At the same time, it’s worth remembering that buyers are pretty savvy these days – they’ve probably all watched the same TV property shows as you - so they’re unlikely to be fooled by some of the more obvious clichés, like vases of flowers crammed into every conceivable nook and cranny, or cheap tricks like dishes of vanilla essence placed in a warm oven to fake the smell of fresh-baked cakes.

In fact, it’s generally the simplest and most obvious things that have the most impact. For example, studies show that people react more positively to properties that are brightly lit. So, during the day, keep curtains wide open and windows clean. At night, switch on all the lights, making sure that there are no blown bulbs or flickering fluorescent tubes.

Next, sound. Personally, I always consider that the best and most restful way in which to view a property is in complete peace and quiet - although again, some people simply can’t resist putting on a little light classical music, in the belief that this helps create a calm atmosphere. And maybe they’re right. Either way, you should certainly try to avoid any loud, jarring noise. And make sure that the TV is turned off for the duration of the viewing.

Talking of loud noises, it can also be worth mentioning to your neighbours that you’ve got someone coming round to view your home – particularly if you know they are planning a bit of DIY. Even if it’s coming from next door, the sound of a hammer drill can be a trifle off-putting!

Lastly, smell. This has more impact than you might think, and it can work either for or against you. As with sound, I always think the best smell is the essentially neutral aroma of a good, clean home – particularly important in kitchens and bathrooms, of course, but equally so if you have pets. Simply masking unpleasant odors with chemical air fresheners is no substitute for a serious springclean!

The exciting world of stamp duty, a quick guide .

Stamp Duty – or Stamp Duty Land Tax, to give it its full title – is one of the most significant costs associated with buying and selling property. Unlike agency fees, however, which are generally paid by the seller, Stamp Duty is paid by the buyer. Precisely why the person who has just forked out hundreds of thousands of pounds to purchase something – as opposed to the seller, who has presumably just made a tidy profit on the transaction -- should also be obliged to pay thousands more to the Government, is just one of the peculiarities of a tax that most people agree is in urgent need of a radical overhaul.

Stamp Duty is levied at different rates, based on the value of the property concerned – as follows:

·         Up to £125,000 – 0%

·         £125,001-£250,000 – 1%

·         £250,001-£500,000 – 3%

·         £500,001-£1million – 4%

·         Anything over £1million – 5%

Currently, as a temporary concession, first time buyers only are exempt from Stamp Duty on any purchase up to £250,000. However, as always, terms and conditions apply – not least, the fact that the buyer must be able to show that he or she has never previously owned a property anywhere in the world! There are other situations where exemptions also apply – including properties in areas that the Government considers to be disadvantaged and, of course, so-called “zero carbon” homes.

As thing stand, however, the entire Stamp Duty regime is deeply flawed.  With the exception of the 5% rate, which was only introduced in April this year, none of the higher-rate thresholds have been increased since 1997, despite average house prices having rocketed by the best part of 200% since then. Consequently, the thresholds are now ludicrously out of line with current property values.

However, arguably an even bigger problem is the fact that once a threshold has been passed, Stamp Duty is levied on the full purchase price, and not just on the extra amount. Needless to say, this can have a significant distorting effect on property prices close to the thresholds.

So, will this or any other Government grasp the nettle and institute a root and branch reform of SDLT? Sadly, in these cash-strapped times, I wouldn’t hold your breath!

Bungalow-tastic !

  It seems the new year has brought with it a number of people wanting to sell bungalows, they may be short on stairs but are high on appeal.

  Its not only the older generation that are moving into them either, just last week we sold a detached bungalow to a young couple that had recently become parents for the first time. For them the appeal of no stairs and generous room sizes along with the potential re-sale potential was too good to miss out on.

  So "what bungalows do you currently have to offer?" I hear you say in an overenthusiastic tone. Well being part of the TEAM network we currently have around 30 to offer for sale (follow this link for the full list: http://bit.ly/gsXdTP  ) so I will round up 3 of my personal favourites.



http://bit.ly/hhhrsT This 3 bedroom detached bungalow is situated in the popular Worlebury area of Weston super Mare, offering plenty of space along with the scope to extend into a good sized family home makes this one of the most popular properties on our books. It is being offered with no onward chain with an asking price of  £229,950.

http://bit.ly/fu1GDa Another 3 bed detached bungalow this time found in the predominately family area of Mead Vale. Offering plenty of space both inside and out and only a stones thrown from one of the most highly rated primary schools in North Somerset, Woodpecker drive is an ideal location for many people.

http://bit.ly/gm6Fd8 Finally this may be one of our smallest properties but for the older person wanting to down size this would be ideal. 2 bedrooms and pleasant gardens set on a level location, a short walk from Worle high street for under £140,000.

happy hunting.

Jon

Got a few spare quid ?

Coffee break ?

Need to commute to the city ? have a few quid burning a hole in your pocket ?

Well here are a few interesting properties that might provide all the accommodation you need.

Need a little more space ? Well this quaint little house in Knights bridge, South West London offers:

• 8 bedrooms
• 5 reception rooms
• 7 bathrooms

Not forgetting the 39' indoor swimming pool and roof terrace. Set a stones thrown from Kensington gardens and Hyde park All this could be yours, a snip at just : £35,000,000 

http://www.rightmove.co.uk/property-for-sale/property-30918275.html

If 8 bedrooms is still going to leave you stuck for space how about this period terraced property in the heart of Mayfair: 

• 21 bedrooms
• 7 reception rooms
• 21 bathrooms
• Swimming Pool

£48,000,000 and its yours. 

http://www.rightmove.co.uk/property-for-sale/property-17572056.html

Away from London and the prices begin to get a bit more realistic. 

On the outskirts of Liverpool lies this 7 bedroom detached property 

• Powder room (everyone needs a powder room) 
• 3 reception rooms 
• Double garage with playroom above 
• 6 en-suit bathrooms 

£2,750,000 to live in style.

 http://www.rightmove.co.uk/property-for-sale/property-31870100.html

How about living like a  premiership footballer in the heart of Manchester ? 

At the top of the Beetham Tower, Europe’s highest residential apartment block, sits this rather swanky 3 bed flat. 

• Panoramic views.
• Open plan living.
• Dining kitchen.
• Three bedrooms.
• Studio/playroom.
• Gym and study.

 

A snip at £4,000,000 

http://www.rightmove.co.uk/property-for-sale/property-31654220.html?premiumA=true

A 5 bedroom detached property that was featured on channle 4's Grand designs 

• Voted in 2005 by the RIBA as one of the top 100 properties built in the UK at that time
• Heated indoor swimming pool. Hot tub.
• Second floor sun terrace
• Bose sound system
• Programable lighting

£1,399,995

http://www.rightmove.co.uk/property-for-sale/property-13649613.html?premiumA=true

The end is near ......

Its getting to that time once again where to much food, drink and too little exercise takes it toll on us all, but ! a new year is almost upon us and with it the perfect time to find that new home that you dreamed of.

At James Rigby estate agents 2010 has proved to be an exciting one with 100's of fantastic property for sale throughout the year.

2011 is already looking exciting with some great new instructions starting to come in.

Happy holidays !!!

Things are on the up

http://www.jamesrigby.co.uk


The number of people looking to purchase houses for sale in the UK has risen, according to a recent report.

Latest figures from the National Association of Estate Agents (NAEA) have revealed that the average branch had 241 house hunters registered with them in November 2010.

This is compared with an average of 218 people who confirmed an interest in buying homes with an estate agent the month before.

President of NAEA Michael Jones said that there is "clear evidence of demand" for properties for sale in the UK.

"These are not window-shoppers," he commented. "Our agents are continuing to make sales and it is particularly pleasing to see sales figures remain constant at this time of the year."