Are first time buyers being too ambitious?
We often report on the problems facing first time buyers on this blog, but Charlie Cunningham, CEO of property developer FreshStart Living, believes there’s a very simple answer to the problem of saving up for a deposit.
“First time buyers don’t have to wait eight or nine years, there’s an extremely easy way that they could half that time,” he says. “They can just purchase an affordable property at half the price. This would halve the deposit, therefore effectively halving the time it takes for them to get on the housing ladder.
“If the average UK house price is £160,000 first time buyers would need a 20% deposit of £32,000. If they purchased an affordable property for £80,000 they’ll only need £16,000 which would take half the time to save. It’s as simple as that and that way it would be more of a sensible purchase and they wouldn’t be saddled with a huge debt.”
Lauren Dean, 27, (pictured) is a first time buyer who bought a two-bed apartment at St Thomas Place in Stockport for £70,000. “I don’t understand why other first time buyers save for years and years for a huge deposit so they can buy a fancy, overpriced property,” she says. “They are just wasting money on rent, when if they chose to move in to a more affordable property, they would need a smaller deposit, they could move in sooner and the money they would have spent on rent can go towards a mortgage.
“In a few years time, as my salary increases, I may choose to move to a more expensive place. But hopefully if property prices pick up, the sale from this place will cover my deposit and I could even make a profit. I think first-time buyers need to realise that if they really want to get on the property ladder, they should stop holding out for their dream homes and swanky apartments because in the long run that sort of thinking will leave them financially worse off.”buying house, first time buyer, selling house
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