More parents than ever are giving their children a helping hand onto the property ladder and making a savvy choice to invest their savings in property.
Eighty per cent of first time buyers under 30 now get financial help from their relatives, according to the Council of Mortgage Lenders (CML), as parents opt to make a long-term investment in a home for their children.
At Gelli Dawel, in Merthyr Tydfil, parents could help boost a first time buyer’s chances of snapping up one of the two and three-bedroom homes priced from just £111,995, by helping towards a deposit.
Luly Brice, area sales manager for Redrow Homes (South Wales), said: “Over the last three years we have seen a dramatic increase in the number of parents proving funds towards a deposit on their child’s home. According to the CML, the number of first time buyers receiving help from family has risen from 45% in 2007 to 80% today.
“Not only are they helping their son or daughter to purchase their first home, parents are also making a long-term investment of their own funds, which could eventually see them receiving a higher return on their cash than, say, a savings account. And a larger deposit in the current mortgage climate generally means an improved lending rate so lower monthly repayments.”
The two-bedroom ‘Broadford’ and three-bedroom ‘Dunmore’ homes at Gelli Dawel make ideal starter homes and are already fitted out with contemporary kitchens, including floor to ceiling units and top name appliances, plus stylish bathroom suites. Unlike purchasing an older, second hand property, everything has already been done to the highest standard, so there’s no need for purchasers to budget for additional costs such as repairs or renovations.
The homes are also built to modern energy efficient standards, which makes them potentially cheaper to run and more eco-friendly.
Nestled between the Brecon Beacons and the Black Mountains, residents at Gelli Dawel can enjoy the countryside yet are still close to the town and within easy reach of Cardiff.
See Also: Property News (0), Council of Mortgage Lenders (0)
Date Published: 12 March 2010
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