The actions and borrowing of governments always impact directly on households, with this having been borne out most obviously in the wake of the 2009 financial crisis.
In the wake of the coronavirus pandemic and subsequent quantitative easing measures, households are also facing a disproportionately high cost of living as inflation soars.
As a result, aspiring homebuyers may struggle to get the mortgage that they require to complete a purchase, as banks begin to recalculate their lending models to factor in the wider economic climate.
The good news is that buyers can consider different types of ownership in the marketplace. Here are some of the most popular:
- #1. Sole Ownership: As the name suggests, this model sees a single individual assume full ownership of the underlying asset from posters to furniture. This is incredibly popular among those who can afford it, as it ensures that all decisions about the use, renovation and future sale of the property don’t need additional consultation or approval. However, sole ownership can also be costly while making it relatively complex to transfer or gift deeds in the future.
- #2. Joint Tenancy: Next up is joint tenancy, which is one of the most common types of land ownership. In this instance, two or more tenants own equal shares of a single property, while each tenant is entitled to equal rights, usage and any income that’s derived from the home. This also makes it possible to invest in a 4-bedrrom house for sale in Birmingham and similar locations, so it’s easy to see its appeal in a high value market.
- #3. Tenancy in Common: With a tenancy in common arrangement, the property in question is owned by two or more persons at the same time. The precise ownership can be split into variable percentages among the tenants, depending on the nature of the arrangement and its structure. This is also fairly common in the current market, especially among first-time buyers attempting to take their first steps on the property ladder.
- #4. Buy-to-Let Mortgages: While some people have argued that buy-to-let mortgages aren’t as popular as they were in the age of widespread tax breaks, they’re becoming increasingly commonplace once again. To this end, there were 5,700 new buy-to-let mortgages completed in December 2019, up 3.6% from the previous year. With a buy-to-let mortgage, you’ll purchase a home with a view to renting it out to private tenants. This way, you’ll look to profit by banking monthly rental payments at a viable yield, supplementing your primary income stream in the process.
The Last Word
So, there you have it; four common types of home-ownership and their various pros and cons. The good news is that there’s an even wider and more comprehensive range of ownership models from which to choose, increasing your chances of taking your very first steps on the high growth property market with countertops and other home decor pieces that come with property in the UK!
