First-time buyers: what are your options?

In this month's edition, we're on hand to assess the options available to first-time buyers wishing to get onto the property ladder.

We also look at how to improve your property's security, there's news on how much of an effect a street name can have on the value of your home and we've top tips to share on how to design your child's bedroom. 

First-time buyers: what are your options?

 

The housing market can be an inhospitable place for young first-time buyers. It requires a dedication to an end goal that borders on single-mindedness with many sacrifices along the way, but it is not impossible to buy a home.

To get you started on your climb up the property ladder, we’ve decided to take a look at some of your best options as a first-time buyer.

Where should you start?

Save. It’s a simple first step, but it’s the one that the majority of buyers struggle with the most. Putting a little away here and there simply won’t cut it, you need to be consistently squirrelling away money, sacrificing holidays and big money spends, in an attempt to scrape your deposit together.

Fortunately, there is help out there. Do some research and find a savings account with the best interest rate. The most popular savings account for first-time buyers at the moment is the Help to Buy Isa.

This account allows you to make monthly deposits of up to &200 until you either buy your first home or reach the &12,000 limit. Once you actually purchase a home, you can put the savings from your Help to Buy ISA towards the deposit, and after the sale is complete you will receive a 25% bonus from the government. For example, if you had &12,000 saved, you would receive a &3,000 bonus after completion.

What are your options?

If you already have some money saved up, but you're just short of the mark, it may be worth considering the following options.

Rent to Buy: This allows you to choose a home that you will one day buy, but in the meantime, you’ll only have to pay a reduced amount of rent (80%), meaning you can save the other 20% for a deposit. Once you enter this scheme, it lasts for five years. During that time, you can buy the property outright, or you can pay for a 25% or 75% share of the property.

0% Mortgage: A 0% mortgage is similar to a 5% mortgage, in that a guarantor must put forward 10% of the deposit, whilst you put down nothing. The guarantor will receive the cash back, provided that you keep up with your mortgage repayments.

Bank of Mum and Dad: When all else fails, what better place to go than the good old reliable bank of mum and dad. Many of the options above require your parents to act as a guarantor anyway, so why not just go straight to the primary source?

Whilst it might seem daunting to begin saving for a property, there are many options that can help you take your first tentative steps onto the property ladder. Do some research and find out which options suit you best.

How to improve your the security of your property

 

As the nights are drawing in and we occupy ourselves with the wintery joys of hot chocolate and cosy evenings, it is easy to forget that it is during these wintery months when burglaries are most rife. Lloyds Bank noted that there are 35% more claims for forced burglary during the darker months of the year, with criminals emboldened by the shorter days. Follow our helpful hints and tips to ensure that you can enjoy the winter months without any other worries apart from who has turned up that thermostat!

Doors
Did you know that over a third of burglars use the front door? It seems like such a simple fix, but this winter, remember to secure your doors to ensure that you don’t have any unwelcome guests. Inspect all your exterior doors to ensure that the frames are strong and in good condition and don’t forget to check the hinges as well. If your door has a mailbox, then ensure that nobody can reach through by installing a mailbox protector.

Windows
As well as doors being popular entry points for burglars, windows are also amongst the most common entry points for break-ins. It’s unlikely that you will be leaving your windows open with the temperatures currently plummeting, however the latches on your windows can prove to be ineffective if put under stress. To stay safe this winter and beyond, you can improve the security credentials of your windows by adding locks or key operated levers which will prove to be much sturdier than the original fixings.

Lights
There is a clear relationship between the darker nights and higher incidence of burglaries – and that is due to the cover which the dark of the winter months provides to would-be criminals. Illuminate your home using outdoor lights in order to make your home a less appealing option to potential security risks; lights on pathways and in gardens will eliminate those darker areas. The use of motion lights is becoming more and more popular, with the element of surprise of a light turning on proving to be an effective deterrent.

Wi-Fi
When considering your home’s security, you would be forgiven for only protecting the bricks and mortar, however a key consideration in these modern times should be your wi-fi network. Your home wi-fi is a potential pathway for intruders into your personal and financial information, and with the ever-increasing popularity of home automation apps can also make your home vulnerable to break-ins. To protect your wireless network, ensure that you are using a secure router and that you have enabled WPA (Wi-Fi protected access) or WPA2 encryption – as well as the usual staples such as a strong password and firewall protections.

Neighbours
Life these days is extremely fast-paced and British sensibilities often drive us to simply say a polite “good morning” and “good evening” to our neighbours, with little more conversation shared. These seemingly inconsequential conversations could also be used to improve your home security, however, as well as fostering better relationships with those living next to us. Use those early-morning interactions with your neighbours to discuss holidays and upcoming plans, so that they will be aware if there is something untoward happening at your home. Neighbours can also move parcels or letters left on your doorstep so that potential burglars won’t be made aware of your absence.

How can the a street name affect the value of your home?

 

When considering the purchase of a property there are a number of variables to consider; how many bedrooms you need, if there are good schools in the catchment area and what the local amenities are to name but a few. However, it seems that there is one aspect which should also now be taken in to account - street name. Recent studies have shown that the name of the road which you live on can have an impact upon the value of your property - so the old adage of “location, location, location” may be even more accurate than ever previously considered when buying a home.

The regal touch
Streets with regal names such as Royal, Palace, Lord and Bishop can boost the value of your home - showing that royal prestige extends well beyond Buckingham Palace. Nearly 10% of house-hunters surveyed are willing to pay more for a property with a regal suffix, with 8% prepared to pay up to an enormous &30,000 more. This perception of prestige clearly has an impact on the price of a home and the overall appeal to buyers - so think carefully when browsing through all those homes for sale and don’t just consider their curb -appeal, but also their catalogue blurb-appeal.

The house on the hill
Aside from the prestige of the monarchy, it seems that certain road names also exert a hypnotic appeal upon buyers with properties on “Hills” and “Lanes” worth 50% more than the national average. Naturally, when you consider a hill or a lane there is the image of peace and tranquillity, which could be a contributing factor in their popularity amongst buyers. On the other hand, properties with “Street” or “Terrace” in their address are amongst the least expensive in the UK, perhaps because of the frequency of these names and as such, a perceived lack of exclusivity.

Bishop’s Hill or High Street?
Property buyers are a discerning bunch, with never-ending lists of requirements, and it would seem that a new addition to this list is an “exclusive” sounding address with many prepared to pay a premium for a premium-sounding address. This preparedness to pay for the privilege of living on “Royal Way” or “Hill Lane” however is split regionally - with those in London 24% more likely to pay extra for an address when compared to those in the North East. Perhaps, then, it is the high prices of the capital city and the greater level of investment it takes to buy in London which can woo buyers into spending just that little bit more - a premium-sounding address to reflect the premium cash outlay required to buy their property.

Read our tips to help you design your child's bedroom

 

Designing a child’s room can be tricky; there are a number of factors to consider so it’s hard to know where to begin. Design trends are forever changing and your child is constantly growing, so it is important that you consider a few things before starting.

Striking the balance between fun and practical is a challenge and designing something that your child does not grow out of too quickly is not easy, but by taking the time to think it over, you can save yourself a lot of hassle and create a space that is fun for them and easy for you to manage.

Draw Up A Floor Plan
Before you start buying all sorts of cute and colourful furniture, it’s important to remember that depending on your child’s age, this room could have a variety of functions.

Have a think about what the room will be used for and draw out a plan. If the room just needs to be a comfortable place to sleep then you should have plenty of freedom, however, if it also needs to be an area to play and study, you’ll require a good amount of floor space and maybe a dedicated little corner for a desk.

Everyone’s home and preferences are different but you want to get as much out of the space as possible, so take a moment to consider the role that the room will play and how it may change over the next few years.

Choose The Right Colour
It may be tempting to simply ask your child what their favourite colour is and then start buying paint or wallpaper.

While it is a good idea to include your child in the design of their room, if their favourite colour resembles a highlighter pen, then your best option is to go with the more neutral shade of that colour.

Your best strategy is to aim for a colour palette that nicely blends with a variety of furniture and will not look so childish once your child turns into a teen. Save yourself a redecoration job in 18 months by picking a colour that will age well with the rest of the ever-changing décor.

Decide On The Flooring
When it comes to flooring you have a few options, all with their pros and cons, so you just have to decide which will be best for you.

Carpet helps keep the room a little warmer but is vulnerable to stains. Hardwood is much more durable and easy to clean but does not provide much cushion for a child that is a little more clumsy than most. You could also opt for rubber flooring that does offer the benefits of both carpet and hardwood; however, it is the most expensive option of the three.

The flooring that is best for you is dependent on the age of your child, but research your options while keeping your budget in mind and make sure your choice of flooring compliments the room and doesn’t break the bank.

Getting The Furniture Right
There are two key things to keep in mind when choosing your furniture, functionality and lifespan.

We’ve already established that space is a valuable commodity so finding multifunctional furniture can be a real lifesaver.

Beds that have storage built in underneath are quite easy to find and the extra storage they provide can go a long way, as well as free up more of the room for other essential items. This also gives you an opportunity to get a little creative and look for ways to combine 2 items into one such as adding some padding to a desk or dresser so that it also can be used as a changing table.

The other consideration for furniture is its lifespan. There is a lot of cute miniature beds, tables and chairs that might look great, but you must remember that they will grow out of it quicker than you think. A good strategy would be to buy some furniture that they can grow into. Their small clothes may not justify full sized dresser just yet, but it will not be long before you are looking for extra storage space and their feet are hanging out of the end of the bed.

Add Character Through Accessories
Now that your room has been planned out, you have chosen your colour palette, had the flooring fitted, assembled and placed the furniture, it’s time to add character.

The great part about this phase of designing the room is that because the rest of the room's features were kept neutral and timeless, you can now give your child a good amount of freedom to add their own personality to the room from accessories.

Whether it’s action figures, bed covers or posters, you can basically style the room however you want and the best part is, these accessories can be easily replaced and changed over the years at the same rate as your child’s taste in décor shifts from one thing to the next.