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[T59]Tax Credit For First Time Buyers

by Nick, Nic

In 1996 the average amount a first-time buyer had to borrow was only ?39,811 ? that's a 202% increase in eleven years.

The figures suggest that if the same growth rate is maintained, then by 2012 would-be house buyers will be looking for a first time buyer mortgage of over ?200,000.

In 2007, on a three times salary multiple, first time buyers need to be earning ?40,190. With current growth, by 2012 the chief earner would need to be earning ?66,806, meaning a 66% increase in earnings compared to today's requirement.

First time buyers are warned to look at the total outlay of their mortgage deal and take into account the mortgage rate and any fees and charges over the mortgage term.

It was only to be expected that the number of first-time buyers fell at its fastest rate for three years during July. They, along with all mortgage owners, will hope that interest rates have peaked as the Bank of England kept interest rates at 5.75% in October ? the same level it has been since a 0.25% increase in July.

First-time buyers and home movers received no relief from the burden of stamp duty in the Chancellor's Pre-Budget Report, leaving them frustrated again.

Previous pledges to help first-time buyers have been abandoned as there were no moves to alleviate the pain that stamp duty causes, especially for those getting a time buyer mortgage.

Rather than increasing stamp duty thresholds the Chancellor chose to increase inheritance tax allowances. For married couples this now amounts to a tax-free threshold of ?600,000.

Having following the Tory lead on inheritance tax, Chancellor Alistair Darling ignored their ideas on stamp duty, namely to scrap duty on properties worth less than ?250,000. The continuing rise of the price of houses means that more and more buyers are being dragged into the stamp duty trap, with the average price of a house for first-time buyers at ?167,000, and the zero-rate threshold for stamp duty way below that at ?125,000. Families paying more than ?250,000 for a house are hit by 3% stamp duty ? on the whole amount. Calculations recently published suggested that if stamp duty thresholds had kept pace with house price inflation then the 3% threshold for stamp duty would now start at ?729,000. Paying stamp duty on top of their deposit, together with their first time buyer mortgage is tough for would-be home owners.

Clare Hartnell, head of property at financial advisers Grant Thornton, said: ?Stamp duty is the best weapon the Government has at its disposal in helping people onto the property ladder and it is amazing that further help to first-time buyers has not been offered in the Chancellor's latest pre-budget report.?

Paul Chafer, of Stroud & Swindon Building Society, said: ?We expected great things from a potential review of housing taxes, yet once again there has been a missed opportunity to support the UK property market by reconsidering the stamp duty thresholds.?

time buyer mortgage

The Toronto condo market is a great alternative to home ownership if you are a first time real estate buyer or looking to downgrade your current real estate investment due to changes in your personal finances or other outside factors. As each year passes, condos are eating up a larger share of the total Toronto real estate market with no end in site.

With the Toronto condo market hot, many construction companies have helped to fuel a condominium construction boom in the GTA that has been under way for more than 7 years now. The result of all of that construction is a massive influx of people moving into the downtown core to live and work.

An interesting fact: Toronto is the number one city in N. America for new condo construction and availability.

Clearly the people of Toronto as well as the new home construction companies working there are telling us that the people of Toronto are looking for more affordable ways to live downtown.

The average price of a condo in Toronto last year was $225,000 compared with $210,000 in the previous year. While average condo prices may be rising this number is clearly much lower than the average cost of a new home in Toronto.

The number of home sales in the downtown core, when you include new and resale condominiums in the mix, greatly exceeds those in the other parts of Toronto and also experiences more competition from buyers helping to drive up the prices for real estate in the downtown core in general.

Buying a condo does not have to feel like "settling for less" as most condos come with first rate amenities such as a sizable terrace, a great view, a true loft, a location close to public transit or perhaps even a swimming pool or gym in the building.

If this is your first foray into real estate ownership or you are an existing homeowner who would like to reduce their debt load you can have confidence that investing in the Toronto condominium market will be a smart investment decision.

Toronto has indeed earned it's reputation as the top market for condominiums in North America with over 260 projects planned or already under construction. "Deteriorating affordability levels in major Canadian centers have led to the resurrection of the condominium lifestyle in recent years," said Michael Polzler, executive VP of Re Max Ontario-Atlantic Canada.

With the costs associated with home ownership continuing to climb upwards year after year condominiums can help to play a role in bridging the gap for people who would like to invest in Toronto real estate but cannot afford to buy a home. This option is especially attractive to first time buyers that do not have a large family already in place with specific needs like ready access to schooling.

While condo prices may be heading upward, there is still opportunities for the bargain hunter to find a condominium in a nice neighborhood for less than $125,000. The advent of the internet has made finding these bargains easier than ever with the MLS as well as private sale real estate sites easy to access.

With record sales in 2007, forecasts for the 2008 Toronto real estate sales market are lower than 2007 record levels with average prices expected to rise at a slower pace.

Article Source : writing to argue

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Both Nick & Earnest Leibermanso are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Nick has sinced written about articles on various topics from Finances, Writing and Cars. A writer on property articles outlining the current climate of the property market. Offering knowledge of a number of key areas in the property sector.. Nick's top article generates over 74000 views. to your Favourites.

Earnest Leibermanso has sinced written about articles on various topics from Insurance, Health and Property Investment. If you would like to view Toronto condos for sale as well as other listings please visit the author's website.. Earnest Leibermanso's top article generates over 27100 views. to your Favourites.