It has never been such a good time to be a first-time buyer. Interest rates are low. You don’t need a big deposit. There are various first-time buyer schemes, and there is also stamp duty relief! What more do you want! Find out more about the first time buyer stamp duty relief, what it means to you, and why now could be the best time ever to be a first time buyer!
What is stamp duty?
Unfortunately, stamp duty is just a tax!
The correct term in the context of buying property is ‘stamp duty land tax’ (SDLT).
Stamp duty has been around for a very long time and for those who have bought, sold and moved house a few times, they will be very familiar with stamp duty.
Of course, being a first time buyer, this will be the first time you have come into contact with this, and it probably won’t be the last time. So if you can benefit from a little tax break, then make the most of it because it might not be around forever!
What is first-time buyer stamp duty relief?
The relief is a tax break/incentive to help first-time buyers onto the property ladder.
However, whether you can benefit from this first-time buyer relief, all depends on the purchase price.
If the purchase price is over £500,000, you will not get this tax relief.
If the purchase price is under £300,000, you will pay no stamp duty land tax.
If the purchase price is between £300,000 and £500,000, you will pay for some!
To read exactly how much and for more details about first time buyer stamp duty in 2020, follow this link.
And I know £500k for a first time buyer seems crazy!
But you will be surprised how expensive it is for them in London! Check out Hubinto and drop a pin anywhere in the UK and see what prices are like in different places…it’s fascinating!
Do I qualify for the first time buyer stamp duty relief?
I know there are a lot of you who are asking this question!
If you are asking, you probably don’t qualify!
You are probably asking because you have never bought a property before, but your partner has. You have inherited a property but technically never bought one. You bought a property years ago but now don’t own a thing! And all of the other weird and wonderful permutations!
Quite simply, there are no loopholes!
If you are buying as an individual or as a couple, and you or your partner have ever owned a property in the past. You won’t qualify.
A first-time buyer is precisely that! A FIRST TIME BUYER. That’s it!
Will first-time buyer stamp duty relief be around forever?
It would be lovely to think this tax relief will be around forever.
However, the reality is that this type of incentive has been used before. And it has been turned on and off in the past!
Again you can read much more about this in my other blog.
But in short, it won’t be around forever, so if you are a first-time buyer and you are in a position to think about buying, crack on!
Make the most of first time buyer stamp duty relief!
Stamp duty has worked well for you (well, hopefully, it will!).
However, it has been used as a stick to beat others!
I may be exaggerating slightly!
But if you are a property owner who wants to buy another property, like a buy to let, holiday home or something else. There has been a massive increase in stamp duty, and it’s killing off many people considering this.
Of course, for many people they might think this is a good thing.
However, the point is that as good a benefit this is for you, the policy can change and what was once good. Could be turned off or made worse, as in the case for some!
It could be the perfect time to be a first time buyer!
Now could then be the perfect time for you.
As interest rates are at historically low levels, this means low mortgage payments, which can only be a good thing! To work out how much it might cost you, head over to our dedicated page for first-time buyers where we have some helpful first-time buyer mortgage calculators, useful guides and FAQ’s.
This, along with small deposits of only 5-10% of the purchase price required — various help to buy schemes (if you want/need them). The stamp duty relief for first time buyers. And hopefully a positive economic future now the dreaded ‘B’ word has passed.
It really can’t get much better!
Just don’t wait too long!
House prices may rise and fall in the short term, but long term they have proven to be historically reliable and resilient. If you wait too long, they might continue to move further away from you.
My advice to someone starting out is to get onto the property ladder as young as you possibly can. Scrimp and save as much as possible to get there.
That’s what I did, and fortunately, I was able to buy my first property at 18. It wasn’t the nicest, but it gave me a head start and enabled me to release equity to buy more. I’ve still got it now, over 20 years later and rent it out.
Buying a property will serve you well.
But don’t dawdle, get on with it and make the most of it.
Time passes way too quickly!
Good luck 🙂