Author: restinnrooms

First time buyers are under more pressure and financial strain than ever before. The age at which those in the UK are able to afford a deposit on a property or commit to a mortgage is increasing. Further, according to a recent article published via the This is Money website, first time buyers are, unlike their parents, now facing paying their mortgages over a staggering forty years in comparison to the average twenty-five year mortgage which their parents took out. This can cost home buyers an extra £63,000.

Then, it is no wonder many first time buyers are struggling to find a way to get on the property ladder. Fortunately, there are alternatives to trying to save whilst affording skyrocketing rent prices in 2016. One of those solutions which is proving increasingly popular is to consider purchasing a park home property as an alternative to a traditional bricks and mortar dwelling, but could a park home make the perfect property for a first time buyer?

To answer that question, let’s take a look at three of the major differences between buying a bricks and mortar property vs. a park home and what they could translate to mean financially and in terms of lifestyle and living.

Buying Mortgage Free?

One of the first and major realities that initially draw so many first time buyers to at least consider making a park home a first home is the simple fact that park homes are bought and sold without the need of a mortgage.

Because park homes are bought and sold independently of the land upon which they stand, it is not possible to mortgage a park home property as traditional mortgages are secured against the land upon which a building resides and not the building itself. Park homes are a cost effective and money saving alternative to a bricks and mortar home for exactly this reason; much of the value of a bricks and mortar property is actually derived from the perceived the value of the land upon which it sits. This permits people to buy and rebuild on land, potentially even knocking down the current property that is built there altogether.

Meanwhile, those buying a park home most often lease or rent the land upon which it is situated. This means that a park home could very realistically prove a far more financially viable means of buying a first time home, especially as even those who cannot afford to buy a park home out-right can still secure finance; independent finance companies typically offer loans covering up to 70% of the purchase price of a park home bought within the UK.

For more finance options when purchasing a park home, visit the Sell My Park Home website and give their blog article: How to Finance a Park Home: Your Options a read. Further, you might want to take a look at their other blog articles whilst there; the Sell My Park Home blog is brimful with up to date information and advice which is all well worth taking a look at, from the perks of park home living to explanations about park home site fees and lease reviews.

Escape Stamp Duty

Stamp Duty is a form of land tax affixed to bricks and mortar properties in the UK. In summary, if you purchase or intend to purchase a property within the UK with a value and purchase price which hits or exceeds £125,000 in value you will be required to also pay stamp duty land tax.

Further, and to add to the bad news for first time buyers, because the rules, laws and regulations surrounding stamp duty land tax within the UK are so complex, unless you are yourself a lawyer or agent who specialises in property law, you will almost certainly need to fork out for the services of one who does in order to ensure you pay the correct amount. Hence, even those who have saved long and hard to get together a deposit on a first time home and think they can keep up with a mortgage may subsequently find themselves unable to afford, on top of those costs, to pay the necessary stamp duty. First time buyers can also find that their search for that perfect home ends up shrinking in choice down to properties which are not deemed valuable enough to be subject to stamp duty tax.

Then, the great news for those who opt to purchase a park home is that park home properties are exempt from stamp duty. Just as mortgages cannot be applied to park homes because park homes are bought and sold independently of the land upon which they sit, so too is it the case that stamp duty cannot be applied – despite how valuable a park home property might be, or its size.

Avoid Years of Renting

According to an article published recently in the Guardian newspaper, the average Brit spends a massive £52,900 on rent before being in a position to make that first time property purchase. Further, those living in London can expect to part with even more, spending on average £68,300 before buying their first property. Take a moment to think about what that amount of money equates to and it is no wonder if the average person is spending over half of £100,000 on rent whilst saving to buy for the first time, it takes so long to afford to buy, or that the average age of the first time buyer is rising year on year.

In contrast, those who save to purchase a park home or even move into one which can be paid for via finance whilst living within it stand to save themselves the 22% of annual income spent on average to live somewhere whilst saving to buy themselves somewhere to call home. Thinking about it in those terms is sure to persuade even the least enthusiastic about buying a park home pause for though. This is especially true when the reality can mean that those who turn their nose up at the park home lifestyle are left to scrimp, save and put their lives and dreams on hold to afford to live them ‘one day’ whilst those who are open to making a park home their home are busy enjoying the fact their dreams have already come true.

It may be a buyer’s market in real estate now, but competition can be stiff for desirable properties. What do you do when you’re faced with competing bids from other families hoping to buy the property that you have your eye on? Having enough money to make a standout offer can certainly give you the inside track. If you don’t have such resources at your disposal, however, there are other strategies that you can pursue.

Make them see you are likely to close

While every family selling a home does care about finding the best offer possible, they also care about a quick sale, rather than a drawn-out one. They know that low appraisals, unfavorable inspection reports and mortgage denials tend to cause promising offers to drift away. Showing how your offer is immune to these problems can make it more attractive than even higher-priced offers by other buyers.

Certainly, making a high down payment or offering an all-cash deal can put you at the top of any seller’s list. According to Gershman Mortgage, St. Louis, a leading mortgage lending firm in the region, heading in with a mortgage pre-approval can be nearly as good. It’s the first step that you need to take before you put in an offer.

There are other ways to dress up your offer. Working on a very short contingency period is an excellent idea, for instance. All you need to do is to arrange to have all inspections and appraisals over with before you put in your offer, so that there is as little delay as possible. If you are satisfied with the results of your inspections, you can even offer to buy the home as is. The term as-ison an offer can be an attractive draw to any seller.

Put down far more earnest money than anyone else

The more earnest money you are willing to put down early in the process, the more likely you are to impress a seller. While it can be hard to do this before you have inspected a house, it can still be a good bet to try the idea if you are confident in the value that a home presents. To a seller who sees an actual sum of money waiting for them, it can be too tempting a thing to turn down.

Get sentimental

If your offer falls short of other dependable offers by tens of thousands, there’s usually little that you can do to change the seller’s mind. If the difference is a smaller one, however, a little well-placed sentimentality to your approach may work.

Meet personally with the owners, and show them what decent folk you are. Carefully and poignantly put down your thoughts in a letter. Write about why your family has fallen in love with the home, and why it’s exactly the right place for the future that you see for your loved ones. You can even throw in a word about how you are likely to be accommodating with something like a need they may have to stay on after the sale.

Everyone gravitates towards good, friendly people. Good PR can help put your offer over the top.

When you decide it’s time to buy a Wesley Chapel home for sale, you may start to have anxiety, fears and doubts that you’re making the right decision. But, don’t panic! These feelings are completely normal and to be expected since you’re making such a big change in your life. Here are some of the most common fears a home buyer may experience:

“My agent is trying to rip me off.”

Some buyers are hesitant about working with an agent because they think agents only have their best interests in mind. This is not the case for all agents, so take the time to find one that you really click with and instantly trust. Before you hire an agent, ask if you can talk to any of his references to hear directly from previous clients how the agent performed. You should also Google the agent’s name to pull up any online reviews that could exist out in cyberspace. Use all of this information to find the perfect agent, and then you can put these fears aside.

“I don’t have enough time to find a home.”

If you have to relocate because of a job or if your lease is ending, it can be stressful to find a home in a certain period of time. But, instead of panicking, focus all of your energy on creating a back-up plan. Where could you stay for a few weeks if you can’t close on a home in time? Is there a storage unit nearby where you can stash some of your belongings while you wait? How much will everything cost you? Be productive by planning ahead instead of letting this fear consume you.

“There must be something wrong with this house, I just can’t figure out what it is.”

When buyers find their dream home, they sometimes believe it is too good to be true. Instead of accepting that their dream home does exist, they begin to overanalyze every step of the deal and wonder what could possibly be wrong with the house. Buyers should ease this concern by hiring a professional home inspector to take a closer look at the home. He will uncover any issues that you would not be able to see without a trained eye, so there’s no need to fear if you go through this step.

“I’m worried I will lose my deposit.”

Buyers usually have to put money into an escrow account until the offer has been accepted and the deal is closed. Many buyers are hesitant to get to this stage of the process because they fear losing their money if the deal doesn’t go through as planned. However, buyers should not worry about this. It is not common for buyers to lose their escrow deposit unless it is their decision to back out of the deal, and the decision is not justified by something like issues discovered during a home inspection.

Want more real estate advice from professional real estate agents? Get the honest answers that you deserve. Contact our team of real estate experts at Coast 2 Coast Realty who have years of experience working with buyers and sellers in the Tampa Bay area.