Buying your first home is a huge expense that most people spend several pain-staking years to save up for. But what if there was a way to speed up the process, without sacrificing the quality of your home? Welcome to Shared Ownership, an affordable home ownership scheme that allows you to buy a share of your dream home, while you rent the remainder.
Wondering how Shared Ownership can help you save some extra cash? Here are the key ways that Shared Ownership can ease the financial burden of buying a home:
A smaller deposit
Let’s start with the biggest money-saver. With Shared Ownership, the deposit you put down is much smaller than for a home on the open market. This is because you only need to purchase a share of your Shared Ownership property (usually around 25%), and put down a deposit that reflects the share size! While you’ll also be expected to pay rent on the part owned by your housing provider, this often amounts to much less than buying or renting privately.
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Built-in appliances
When you move into a regular apartment, you’ll often be required to purchase your own furniture if you don’t like the way things look. But with a new-build Shared Ownership property, you’ll be able to enjoy a home that is fully ready to move into, requiring very little additional expense on your part.
Equipped with the latest in appliances, and full of modern furnishings and sleek designs, you’ll only need to make the smallest cosmetic changes to make the home truly yours.
Subsidised rent
Paying for a share of your home and rent simultaneously might sound like a great expense, but it’s much less light on your wallet. For example, the rent that you are expected to pay is 20% less than rent on the open market, giving you extra breathing room to save up for more of your home. And when you do decide to buy additional shares through ‘staircasing’, the rent you pay will decrease even further!
We are currently seeing rents rising in the UK, so buying and then benefiting from subsidised rent could help many renters, especially in and around London like Rita. This first-time buyer used Shared Ownership to take her first step onto the property ladder.
Enjoy plenty of entertainment from home
Managing your monthly mortgage repayments alongside paying for a lively London lifestyle is a difficult balance to strike. But what if you could hit two birds with one stone? Welcome to the world of Shared Ownership, where you can enjoy an active social life without ever leaving your home.
Many Shared Ownership developments offer communal terraces, shared spaces, and even screening rooms, perfect for socialising and hosting friends. So if you fancy a rooftop cocktail or movie night without paying for it, you can enjoy an affordable night out from home!
Reduced environmental impact
Shared Ownership doesn’t just boost your financial situation. It also gives a huge helping hand to the environment! By participating in Shared Ownership, you’ll get access to newly built homes that are much better for the environment. Why? Because new-build apartments are designed with sustainable, long-lasting materials, and don’t need nearly as much energy to function. So, by saving money through shared ownership, you'll also be making a positive impact on our planet - what’s not to like!
You can start saving money today with a Peabody Shared Ownership property. With developments in the most popular parts of London, you can live your dream lifestyle in the capital, without constantly worrying about your bank balance.
