Today saw an interesting article published on Money Supermarket’s website focusing on tips for those moving up the property ladder.
It reports that recent research by Lloyds TSB has revealed that those looking to buy their first home are not the only ones struggling. The bank found that 19% of people already living in their first home and looking to move on simply do not have enough equity to do so.
The average second home is priced at £48,216 more than the average first home, which is a hefty 32% increase.
The TIPs for those looking however to make that next step include:
Get an idea of your home's value:
Websites such as www.propertypriceadvice.co.uk provide a lower, higher and average valuation depending on confidence and activity in the market. Make sure you keep a realistic view on the value.
Be prepared to take a price cut:
If your home isn't budging, be prepared to reduce the price as this might be your only option. According to the Lloyds TSB research just 13% of people will reduce the asking price if they can't sell their home at the current price
Try to keep the value to under £250,000:
The duty jumps from 1% to 3% as soon as you break through the £250,000 mark on your new home, so try to keep under the threshold by shopping around and, of course, negotiating. Keep in mind that the average expenditure on other moving expenses is around £5,500.
Stamp Duty Tax planning may be option for those buying above £250,000.
Remember only first-time buyers who have never owned a property before are exempt from paying Stamp Duty on properties costing up to £250,000, and this exemption only applies until March 2012. If you are buying with someone else, they must never have owned property before either for the tax perk to apply.
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