Tuesday, December 13, 2011
THE HOLIDAY IS OVER:
FIRST TIME BUYERS MUST ACT QUICKLY TO AVOID PAYING STAMP
DUTY
With only three months of the stamp duty 'tax holiday'
remaining, first time buyers must act quickly to avoid paying Stamp
Duty Land Tax on their home purchase, warns the National
Association of Estate Agents today as it releases its new advice
for FTBs.
Peter Bolton King, Chief Executive of the NAEA said: "From March
2012 the holiday is well and truly over for first time buyers. Once
the Government ends the tax exemption, FTBs will face a tax of
three per cent on all home purchases over £250,000.
"With many first time buyers trying to purchase their first home
before the tax exemption deadline, our members will be working
closely with those first time buyers who are able to purchase
before March 2012 to guide them through a difficult and challenging
market place."
With three months remaining until the Stamp Duty Land Tax
exemption for FTBs comes to an end, the NAEA has today issued new
advice for FTBs:
Stay affordable:
The key word for lender is affordability, and it should be for
you as well. The amount you can borrow from a lender should depend
on how much you can afford to repay each month. But when deciding
on your budget, remember that what seems affordable at the time of
purchase might not be so affordable once interest rates move or
your employment situation changes.
Don't forget about fees:
Experienced home buyers will remember to include professional
costs in their budget, but when buying your first home it can be
easy to forget the need to set aside cash for fees to lenders,
insurers, surveyors, and other professionals.
Choose the professionals:
When buying your first home remember to think about who is
selling it to you. Buying your first home can often be a stressful
experience, as well as the biggest financial transaction of a
person's life. Choose an NAEA Member and make this process as
stress free as possible. More and more NAEA members are becoming
licensed, in order to protect buyers and sellers and raise
standards in the industry. The NAEA licence is also supported by
the Government, and so you should always look for the NAEA licence
logo when buying your home.
Keep a paper trail
There can be a lot of paper to keep track of when buying a home,
but it's important to keep an organised file with all your
documents associated with the purchase in it. For FTBs it is also
sensible to keep detailed notes about the properties that you've
viewed including important information such as possible repairs
needed to the kitchen or bathroom as these can eat significantly
into your budget if urgent work is required.
Know your maximum offer:
When you've made your mind up, and it is time to put in an
offer, always remember what your maximum offer is. The amount you
decide to open with is vital, so work out what your absolute
maximum purchase price, and then work backwards.
If your first bid is turned down, then be flexible where
possible with your second offer, but don't automatically jump to
your maximum affordability. Meeting the buyer half-way can be a
good response to show you are serious.