Latest news with #homeownership
Telegraph
3 hours ago
- Business
- Telegraph
‘I was ridiculed for buying a London flat, but it's already gained £100k'
As a single woman in her 20s, owning my flat gives me a level of independence and security that would be impossible otherwise. Dodgy landlords are no longer a concern of mine and I don't have a looming eviction date. I don't even have to worry about finding a suitable partner with the means to escape the pressured rental market, as the cost of renting a room in the capital continues to surge. Before I bought my flat last year, I'd been a student, sleeping on sofas for weeks at a time while taking on summer jobs. After that I became a renter, living for two years with university friends. But once the keys were in my hand, I suddenly had something I'd not had since I'd left my family home for university – a permanent base. My colleague, Josh Kirby, writes that he does not 'believe a flat in London is a good investment for me at this moment in time'. But I decided to buy because I wanted a proper home. And while some like Josh have cast doubt on the wisdom of buying a flat in the capital, I think it is still a sensible option. And if it is located in the right area and well looked after, there is little concern about it holding its value. Some worry about the uncertainty around the current housing market, but I took a gamble on a nice flat in a popular location. I now live near the Thames, a 30-minute commute from work, and near a number of friends. And so far, I've had no reason to worry about it. In fact, Zoopla has estimated that in the year since I bought it my flat has increased in value by £100,000 – which, frankly, does seem ridiculous. But I don't place much weight on the value growth: I have no plans to sell my flat in the near or even mid-term and, without sounding too much like an estate agent, looking at your home as only an investment is a mistake. That's not to say that money was not on my mind. I have been up front with friends, and in my previous column, that my parents gave me a very sizeable deposit to help me buy. But I am far from the only one. My mortgage is entirely my responsibility, as are the ground rent, service charges, utilities and upkeep. I was paying over £1,080 a month in rent; now, my mortgage payments are £650. Even when service charges (mine went down this year) and ground rent (peppercorn) are taken into account, I am still better off. And I've got a fixed rate of 3.99pc for the next four years, so I don't have to endlessly stress about the latest inflation figures. Currently, I overpay by roughly half, because if I spent the full 40 years paying off my mortgage, I'd pay close to £500,000 in interest. That's more than £3 for every £1 I borrowed. And because I bought last year, I benefited from lower stamp duty – saving me £4,000. I also have lodgers. They get a good deal, with below-market rent, and I get help saving towards some of the renovations I want to do. Being a landlord – even in a relatively informal way – has been eye-opening. I feel confident I haven't lost any future opportunities by being tied down: if I wanted to move away for a period, it would be pretty easy. Flats in my postcode are currently being let for as much as £2,700 a month, and charging a monthly rent of £2,000 would more than cover my costs. Even with the upcoming changes in the Renters' Rights Bill, I'd still be able to regain the flat within four months if I wanted to move back in (assuming tenants moved out as asked). Making my flat my own One of the joys of being a homeowner is that you get to decide what the place you live in looks like. No more 'landlord specials' for me – I can decorate to my heart's content. Considered renovations can also add significant value to a home. I increased the size of the second bedroom by moving a wall, and have replaced some flooring. I also plan to have a new bathroom – all of which should help to keep the value of my flat level. While these are not insignificant investments, increasing the value of the flat isn't my only driver. Improvements make the flat a nicer place to live. It's a different priority, but one that is just as important. It should also make it easier to sell. Before I bought it, the flat had been let to social housing tenants and had not been that well looked after. I made the decision to buy it based on its good bones. Now it's being looked after – and with no stars in my eyes as to what I could sell it for – I am confident it would go quickly if I wanted it to. Now is a good time to buy a flat There are a lot of numbers floating around which make the London market look less than healthy. The price of flats has not significantly increased since 2016, with buyers put off by concerns around high service charges, cladding issues and incomplete leasehold reform. But one thing this meant for me was I could negotiate a significant discount. My flat was initially listed for tens of thousands of pounds more than I paid for it. The sellers, who the estate agent told me were living abroad, had already been almost the whole way through the sale process once before, but the buyers had dropped out. With weakened interest in flats generally, even my two-bed, within walking distance of Canary Wharf, was struggling to sell at its original price. The average home sale at the moment is being agreed at 3pc – £16,000 – lower than the average asking price, Zoopla has found. I used this knowledge, and my position as a chain-free buyer with a mortgage already approved, to promise a swift and easy sale, and secured a larger discount as a result. Obviously, not every flat on the market will turn out to be a bargain. But as sellers move away, buyers who can be flexible and move quickly will reap the rewards. Mortgage lenders are rapidly relaxing affordability rules and stress tests in order to lend more to first-time buyers, and are lobbying hard for regulators to go further. This means that homes which could have been out of budget may now be within reach. Maybe I only strongly support buying because, for now, it has worked very well for me. But the fact remains that it works very well for most, providing a level of housing and financial security you can't get through renting. That's why people want it so badly.
CBS News
5 hours ago
- Business
- CBS News
Chicago company manufactures new homes, makes home ownership more affordable
Affordable housing is a topic about which politicians talk a lot, but now, a Chicago architect is actually putting hammer to nail to make home ownership possible for more people. Tim Swanson, founder of Inherent Homes, has found a way to keep costs down for both his company and families. An excited Dominque Ward recently documented a moving day like no other into her new residence. The first-time homebuyer's house was assembled right before her eyes in just hours. "Once you put it down on the foundation, like everything's in it," Ward said. "All the appliances came with it." The mom of two has joined a growing group of first-time homebuyers able to purchase new construction in Chicago. Such a thing does not come cheap anywhere in the city. "I never wanted to leave the West Side," Ward said. "I knew property was getting really expensive over here." New homes near Ward's West Side neighborhood could cost half a million or more. Ward paid closer to $275,000. "For people like myself — single parent just trying to raise your kid and survive the world — it's a great opportunity," Ward said. It was an opportunity that opened up thanks to Inherent Homes. The Chicago-based company's mission is to make home ownership less of a sky-high goal by lowering the cost of building. The first step is finding cheap land. Inherent Homes are planted on vacant city lots, and purchased for as little as $1. "Finding ways to keep our costs down can meet more families where they're at," Swanson said as CBS News Chicago visited him at the Inherent Homes warehouse in Lawndale. He said keeping the process of manufacturing the homes indoors removes weather delays from the equation. "We have six homes here that are not getting wet, which means they're not drying, which means we're not wasting a week to get back into the home," said Swanson, "so that's an important part of it." He said they can go from raw material to framed interior ready for a rough inspection in two and a half to three weeks. Add another month and change tiling, paint, and other homey finishes. "So, from there to there is eight weeks total," Swanson said, "and we joke all the time, we wish it were faster." Trimming the time cuts labor costs and keeps interest at bay. Swanson said buying materials in bulk helps the budget too. When the homes are ready, they're squeezed out the door of the manufacturing facility. "It costs us just about $350,000, $370,000 to build a home, and then we sell them, unsubsidized, for $395,000," Swanson said. Purchase price on paper is usually lower thanks to various financial incentives. One example is the city's Building Neighborhoods and Affordable Homes Program, which doles out forgivable loans to homebuyers that transform trash-collecting lots and bring them back on Chicago's tax roll. Inherent Homes intentionally picks vacant land so customers can qualify. Because Ward's lot used to be a weedy empty space, she was able to save $100,000 off her mortgage. "Once I found out about these types of programs is when is when I went ahead and pulled the trigger," said Ward. "I was able to show my girls that anything is possible. It's an amazing feeling." CBS News Chicago asked Swanson why more people and companies aren't doing what Inherent Homes is. "It takes a level of insanity to work through the machinations," he said. Swanson said he would happily share his secret sauce with other builders to create more moments like the one Ward celebrated as she saw her finished new home.
CTV News
9 hours ago
- Business
- CTV News
Young adults working to break home ownership expectations
Younger generations are trying to get involved in the real estate industry and own a home. CTV Windsor's Bob Bellacicco reports. Young adults are working to break the stigma about not owning homes at a young age. Jacob Boow has heard his generation is facing an uphill battle when it comes to home ownership but doesn't agree. 'You got to get out of that mindset,' said the 22-year-old. 'You gotta work out a plan.' Boow got into the trades in high school and started making money. At 20, he bought his first house. 'Got that house and I fixed it up. I lived in it for a little over a year, and then I flipped that house,' he said. 'And then once I flipped that house, I was able to purchase a better house for me to be more comfortable in.' He plans to build equity in that house. 'Now I'm working towards saving up a little bit of money again, so then I can get another house and then get into some passive income so that I can grow what I desire, which would be having generational wealth,' said Boow, Realtor Rhys Trenhaile said Boow is not alone with more young people getting involved in the real estate market. 'It's a new group. It's a new vibe,' said Trenhaile, who sees some young investors adding an extra unit in the basement to rent out. 'They're getting it done, and they're finding different ways of getting it done, in a way that I didn't see the youth attacking this and getting home ownership, say, five years ago.' The number of monthly listings is up roughly 10 per cent over this time last year. There are currently about 2,600 listings in Windsor-Essex. Trenhaile said the number is going up as more baby boomers downsize. He pointed out wages have increased, housing prices have flat-lined, and interest rates have gone down opening the door to young upstarts. 'That wasn't happening two months ago so now they're getting really busy again,' Trenhaile remarked. 'And to us that's the lead measure as real estate agents, that's a lead measure of about 30 to 60 days to know that we're going to be busy.'
Daily Mail
10 hours ago
- Business
- Daily Mail
'Saudi Arabia is a global destination for real estate investment,' says Mohammed Albuty, CEO of the National Housing Company
Mohammed Albuty, CEO of the National Housing Company (NHC), affirmed that Saudi Arabia is undergoing a significant transformation in the real estate sector, driven by the objectives of Saudi Vision 2030. He emphasised that NHC is at the forefront of this transformation as the region's largest real estate developer and the executive arm of the public sector. Mr Albuty's remarks came during his participation at the 'Capitals London ' event, held alongside the Cityscape Global Exhibition, where he highlighted that NHC has played a key role in the success of raising the homeownership rate among Saudi citizens to 65pc one year ahead of schedule, and aims to reach 70pc by 2030. This progress has been fuelled by the development of more than 600,000 residential units, half of which are expected to be completed by the end of 2025. He added that the company is currently managing 39 high-profile projects across 17 cities in Saudi Arabia, with total investments exceeding $154 billion. To date, over 100,000 residential units have been sold through off-plan sales. NHC also manages a land portfolio in the Kingdom spanning more than 284 million square meters. Mr Albuty emphasised that enhancing quality of life is a core pillar of the company's strategic plans. Sustainability principles are embedded across all stages of development, from planning and design to material selection and community management. NHC aims to reduce commuting times, provide interactive public spaces, promote healthy lifestyles that strengthen social bonds and a sense of belonging, and dedicate vast areas to green spaces. Mr Albuty also noted that NHC has successfully attracted international developers with direct investments exceeding $10 billion, through strategic partnerships with global real estate firms. Key partners include K. Hovnanian from the United States, Urbas from Spain, TMG from Egypt, CITIC Group from China, Emlak Konut from Turkey, and Kooheji from Bahrain. These partnerships encompass the development of major residential projects, in addition to collaboration with CITIC in areas such as supporting industries, logistics zones, and supply chains to enhance local content. Mr Albuty concluded his statement by affirming that the Saudi real estate market is gaining increasing confidence from investors around the world. He emphasised that NHC is moving forward with a clear vision to become the main driver of real estate growth, contributing to the development of integrated cities that reflect customer aspirations and support the objectives of Saudi Vision 2030.
CTV News
13 hours ago
- Business
- CTV News
32,000 more homes needed annually in Toronto to return to pre-pandemic rates: CMHC report
Construction is shown at the site of a new condominium project in downtown Toronto, Tuesday, Jan. 24, 2023. Toronto will need to build nearly 32,000 extra homes per year for the next decade for housing costs to dip back down to pre-pandemic levels, according to a new report. The Canada Mortgage and Housing Corporation (CMHC) released new estimates on Canada's housing supply gaps on Thursday, showing that a return to housing affordability levels last seen in 2019 will require between 430,000 and 480,000 new housing units be built annually across the country until 2035—an approximate doubling of the current pace of construction. The report says that if home building of both ownership and rental type properties continues at a 'business as usual' pace, Toronto will see an average of 44,000 housing starts annually. However, to reach prices seen in 2019, those housing starts will need to increase by nearly 70 per cent—or 31,511 units—to reach 75,565 annual starts. Of the approximate 32,000 units, the CMHC report says more than 26,000 should be additional ownership starts, nearly 4,000 should be primary market rentals, and more than 1,100 in the secondary rental market. The report adds that despite increased rental construction in recent years, the region is lacking homeownership options that match local incomes. CMHC says home prices in Toronto grew by 6.7 per cent between 2019 and 2024, while rental costs jumped 4.8 per cent in the same period. They add that home prices will continue to climb with increases as high as 62 per cent in 2035 if there is no action to increase supply. That change in price drops to nearly 20 per cent with additional supply. As for the rest of Ontario outside of Toronto and the Ottawa-Gatineau region, the report says over 86,000 additional housing starts are needed annually to reach a total of 124,795 new builds every year for the next 10 years.
