Why homeowner, 29, who managed to buy her own flat is still jealous of her pals who rent
IT’S never been harder to get on the housing ladder - but is it always as good as it sounds for homeowners?
Kylie Petitt, 29, bought her one-bed flat in Woolwich for £210,000 in 2016, but admits she often misses the flexibility and freedom that her friends who still rent have.
The charity worker bought her home through a shared ownership scheme - allowing her to purchase 30 per cent of the property - after her parents lent her £6,300 for the deposit.
She said: "I’m at a turning point in my life and I’m not even sure if I want to stay in London, but it would be totally stupid to sell my flat now - so I feel a bit stuck for the next few years."
"As a shared owner, I also can't just rent it out and move back in later, which rules out any dreams of travelling, like some of my renting friends are now doing.
"I feel very lucky about owning my home but I do sometimes get jealous over the flexibility of renting."
Kylie is part of the 27 per cent of young people who've found ways to own a home in the UK, securing a place on the property ladder and escaping bad landlords, increasing rent rates and flaky short-term contracts.
She had to say no to meals out, new clothes and beauty products, so that she could cover the £2,500 solicitor, broker and mortgage fees, on top of furnishings to move into the flat with.
Kylie still has to be very careful with money because, despite only owning 30 per cent of her home, she still needs to sort out and pay for anything that needs fixing in the flat – from the boiler, to internal pipes, electrics, doors and windows.
She said: "After a couple of months in my flat, the windows popped and cracked because of building works taking place on the development site opposite me.
"I wasn’t aware that internal areas include windows and I had to fight the developers by myself to cover the costs.
"It’s pretty tough being on my own and sorting out things like that instead of having a landlord to ring up for help – although I know not all landlords are that helpful anyway!"
Kylie's flat is also in a leasehold building owned by a freeholder.
"A downside to leasehold flats is that owners have to pay a monthly service charge to the building’s freeholder for communal area maintenance, gardening, health and safety, fire regulation and admin.
She explained: "I pay around £80 but it’s so hard to even get a response from the freeholder, so nothing ever gets fixed.
"They charge for the tiniest things such as paper invoices, which is obviously really frustrating and costly."
Despite these constant frustrations, Kylie ultimately thinks that buying is better than renting in the long-term.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a grim task but there are schemes out there to help first-time buyers own their own home.
Help to Buy ISA - It's a tax-free savings account where for every £200 you save, the government will add an extra £50. But there's a maximum limit of £3,000 which is paid to your solicitor when you move.
Help to Buy equity loan - The government will lend you up to 20 per cent of the home's value - or 40 per cent in London - after you've put down a five per cent deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime ISA - Another government scheme that gives anyone aged 18 and 39 the chance to save tax-free and get a bonus of up to £32,000 towards your first home. You can save up to £4,000 a year and the government will add 25 per cent on top.
Shared ownership - Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25 to 75 per cent of the property but you're restricted to specific ones.
"First dibs" in London - London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
Starter Home Initiative - A government scheme that will see 200,000 new-build homes in England to be sold to first-time buyers with a 20 per cent discount by 2020. To receive updates on the progress of these homes you can register your interest .
She said: "I see renting friends who need to move because their landlord decides to sell up or raise the rent and it makes me feel lucky about the fact that I'm secure here."
"I’ve also loved being able to put my own flair on the place for the first time ever. The financial and freedom sacrifices are worth being able to come home and call it mine."
Thinking about what advice she’d give to renters who are considering buying, Kylie added: "You need to do what’s best for you.
"If you’re not 100 per cent sure you want to stay in the same place for the next few years or make big sacrifices and compromises, then it’s not the right time to purchase a home."
"However, it’s always good to save anyway, because you never know what life is going to deal you."
LATEST ON HOUSE PRICES
But it's not the same for everyone. One young couple lived on a diet of beans and noodles while they saved to buy their first home before they turned 21, and never regretted it.
One London lad bought a £135,000 three-bed house with his girlfriend at just 18 - but he made one big sacrifice.
Some banks are starting to offer alternatives, such as "no deposit" mortgages to customers in order to help them get on the property ladder.
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