Purchasing a new home as a first time buyer, whether through private sale or shared ownership, can be one of the most daunting yet satisfying and rewarding experiences. But what are the private sale and shared ownership ways of to buy a home. We get stuck in and explore these two great avenues property hunters can take to get a foot on the property ladder.
What is private sale?
Private sale is the conventional way to buy a home and own it completely. But you may not have heard the term “private sale” up until now. This is because the term is usually only used within the property industry to differentiate between buying options. Purchasing a home the conventional way gives you an opportunity to own your own piece of London. In the current property market it is considered a great achievement to own a home outright and doing that through private sale requires you to be in a financially healthy position. Property firms not affiliated with housing associations, or property portals such as Rightmove or Zoopla, often refer to private sale in generic terms on their website such as ‘Property for sale’ and ‘New homes for sale’ but they are the same thing. We’ve broken down the private sale buying process so have a read to discover more about the process.
Shared Ownership explained
Shared ownership is a unique scheme that allows you to get on the property ladder by owning a share of the property and paying rent on the remaining share. Shared Ownership not only allows you to get on the property ladder with a smaller deposit but it gives you the opportunity to Staircase and own 100% of the property.
Does Shared Ownership mean sharing with someone else?
Although it is called Shared Ownership you don’t have to share the home with anyone you don’t want to. The shared element just means that you own a share of your home and we own the rest, though you can do a joint purchase with a friend, family member or partner if you want to. The benefit of Shared Ownership will definitely ring bells for first time buyers who have been renting for years without being able to get out of the cycle.
Don’t waste time renting without owning
Time is most definitely a factor when it comes to the property market and the sooner you’re able to get on the property ladder the better. If you’re on the renting wheel to save up till you’re able to buy a home on the market then consider the following:
- How much could the property cost a few years from now?
- By the time you’ve raised that money, how much would you have spent renting?
Step on the property ladder
So what are you waiting for? We can help you get on the property ladder, whether you’re looking to buy through shared ownership or private sale.