Vote totals:
Yes:
100%
No:
0%
Neutral:
0%
DEBATE: PROPERTY INVESTORS ARE PRICING FIRST TIME BUYERS OUT OF THE MARKET
PROPERTY INVESTORS ARE PRICING FIRST TIME BUYERS OUT OF THE MARKET
First time buyers can’t afford to compete with investors.
With continual rising interest rates, and the competition for low end properties from property investors with cash available, first time buyers are now struggling to get on the property ladder. Then, the investors have the cheek to complain that property prices have risen and are no longer cost effective to them. How do you think the first time buyers feel?!
It may be a little harder to get on the property ladder but investors have actually provided stability to the market along with more choice whilst renting.
There are a number of things first time buyers may be able to do to get a leg up such as:
Get help from parents
Get a graduate mortgage
Buy with a friend
Get a lodger mortgage
Get a longer mortgage
Key Worker Living Programme
Right To Buy Scheme
Home Buy Scheme
Northern Rock offer the "Together Mortgage" which allows people to borrow more than 100% of the property value. Part of the mortgage is taken as an unsecured loan. The mortgage is particularly suitable for first time buyers who have been unable to save up for a deposit.
PROPERTY INVESTORS ARE PRICING FIRST TIME BUYERS OUT OF THE MARKET
Investors get tax relief on mortgage interest payments
However first time buyers do not.
The tax relief offered to buy-to-let owners should be removed, says the president of the Chartered Institute of Housing (CIH).
Paul Diggory has called on the government to tackle the "runaway" market which he says is contributing to problems faced by first-time buyers.
Letting property is not something to be done on a whim – a lot of responsibilities come with it.
That’s why a landlord is entitled to make some money in the same way as any other business.
PROPERTY INVESTORS ARE PRICING FIRST TIME BUYERS OUT OF THE MARKET
Landlords care less about the maintenance of property
Many property…....
PROPERTY INVESTORS ARE PRICING FIRST TIME BUYERS OUT OF THE MARKET
The Buy-to-Let sector contributes over £30 billion to the economy each year
All of this money is going into the hands of landlords and making it increasingly difficult for people to get on the property ladder. You take a 20 something couple who are looking to buy possibly both or one of them has been to university so has some degree of debt and just because you have a degree does not mean that you are guaranteed a job with pays well at the end of it. So you and your partner would like to buy somewhere but you can’t because it is just to expensive so you look at renting once you find somewhere that you can afford you think great but there is no way that you will be able to save to buy your own place and it can takes years decades even before you are in the position to finally own your own place I think it is stupid that first time buyers can’t even get on the property ladder. Investors and landlords really need to look at what the economy is doing to young professionals who want to be able to own their own property.
Today over a million households live in Buy-to-Let properties. These property assets are worth well over £120 billion and the Buy-to-Let sector contributes over £30 billion to the economy each year.
This contribution is worth more than that made by all the pubs, hotels and restaurants in the country and is over four times more than the contribution from the motor industry.
PROPERTY INVESTORS ARE PRICING FIRST TIME BUYERS OUT OF THE MARKET
Buy-to-Let has spread the privately rented sector wider
Buy-to-Let investors have been active in many areas which traditionally have not had much private renting at all.
This has extended alternatives to home ownership (or social housing) geographically to towns and suburbs that had little or no private renting before. This has also helped to revive the housing markets of some areas and to assist in the regeneration of inner city neighbourhood
PROPERTY INVESTORS ARE PRICING FIRST TIME BUYERS OUT OF THE MARKET
Buy-to-Let has helped to stabilise the housing market
Buy-to-Let mortgage default rates are low and there is no obvious reason why they should rise significantly. In the absence of Buy-to-Let, many young households would have been forced into owner occupation at a much earlier and financially precarious time in their lives. The overall stability of the housing market has been improved substantially as there are less severely financially stretched property owners than there would otherwise have been.
General house price rises cannot be attributed to Buy-to-Let but to growing user demand for housing and limited new supply.
