Monday, 8 September 2008

Protperty ladder and stamp duty

As I am sure you are all aware there are some recent changes to the property market, which supposedly aide buyers, and particularly first time buyers.

I am currently living with a my boyfriend and his Rents, his Sister, his Nan and Roxy the dog. Quite a crowded house and perhaps not an ideal situation, but quite frankly it is our only option at the moment. We have little savings and my job does not really pay enough to save without having any ounce of a life after paying bills, so we could be here a while, which surprisingly doesn't bother my boyf (he is quite happy to be waited on hand and foot by his mother!) but it does bother me. For someone who has spent the passed 5 years living with other people in student halls, then an average student house, followed by living in now three different families homes, it is a matter of urgency to get our own house. But for the time being this situation is the best for getting some money put by, renting a flat would not allow us to do this as any extra money we do have now would be quickly swallowed up by council tax, fuel bills, water bills and food supplies.

In light of the changes to help move the property market on, I am not sure that they have gone far enough. I don't think any of these changes can help someone like me, but for someone who does have some savings for a deposit, yes the prospect of being able to get a mortgage on a more expensive house and not have to pay any stamp duty may ease the financial situation in the short term, but in the long term it is not shaving any money off the buyers monthly mortgage fee. Which lets face it is the biggy! Also as far as I am aware if you do purchase a property that is £176,000 or above you have to pay at least 1% stamp duty on the entire amount, which logically to help people you should only have to pay the % on the amount minus the £175,000 threshold?

If I had savings I could probably get a morgage, but then we would still be left with the problem of actually paying it each month! I think the government need to do more towards lowering these costs?

I do think that it is good that they are now trying to arrange schemes to help current property owners who are in financial trouble keep their homes. But annoyingly for some it is a little too late!.

I am sure there are many in my position who see having a house at this point as a very very distant dream!

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