Lifelines for first-time buyers: affordable paths to property ownership
Do you really want to buy your first home but feel overwhelmed by some of the financial mountains you need to climb?
You’re not alone. According to an article by BBC News, the age group owning their own home that has fallen fastest in size in the last thirty years is anyone aged 25 to 34.
Understanding the first-time buyer challenge
This is not helped by the disparity between the house inflation rate and the average rise in salary or wages, upon which mortgage companies base their decisions on how much they are willing to lend to any prospective buyer.
Indeed, the various monthly house price indices published by financial institutions bear this out with the latest Halifax report showing that, since 1992, the rate of house price growth has been over 500%, while the latest average weekly earnings from the Office of National Statistics has shown a relatively static rise in what the average worker takes home.
However, with recent global and domestic issues that included a pandemic and a cost-of-living crisis fuelled by the bills for fuel and certain foodstuffs, all of which have been impacted by geopolitical decisions, the available amount to save each month has dwindled.
The first-time buyer deposit challenge
If you are currently renting, the situation has not been helped by the rates of rental costs increasing, which has further eroded the disposable income available to put aside for that all-important deposit.
The BBC report looked at six cases of individuals from that 25-34-years-old category to understand the ways that some people are dealing with the constraints they face when trying to buy their first property, as well as detailing their experiences.
First-time homebuyer tips: real solutions that work
The respondents have used a variety of methods to get onto that first rung, including:
- Researching government schemes and help available for first-time buyers
- Assessing the best mortgage products that fit the needs of the first-time buyer
- Buying a cheaper property that is a “project”
- Taking in lodgers to help pay for the monthly mortgage repayments
- Moving to an area where property is more affordable (although this might not be practical for commuting and family reasons)
You can read more here about how the respondents got on with their chosen path to property ownership as a first-time home buyer.
How to buy your first home: overcoming the deposit hurdle
Finding that deposit is probably the hardest step in the first home buying process. While some first-time buyers might be lucky enough to fall back on financial help from the famed “Bank of Mum and Dad” and input from relatives and friends (another report by the BBC based on data from Savills estate agency shows that over half of first-time buyers rely on this help to buy their home), others may not be in such a fortuitous position.
Looking at the option of buying a property that needs work and is therefore cheaper, something to consider is this: provided you aren’t setting yourself up to buy a money pit that forever drains your bank account, getting on to the property ladder with any property will make it far easier to move up that ladder afterwards. The value of the property will likely continue to appreciate at a faster rate than your ability to service a growing deposit requirement. And getting a good survey, too, is important for this strategy to work best.
Judicious preparation and research will ensure that you find the property that is right for your needs right now – even if it’s not your ideal choice, it’s not permanent and can give you that all-important impetus for the future.
Best Value Conveyancing for first-time buyers
Because your funds are constrained and limited, at Best Value Conveyancing, we know that you want to employ legal services for your first-time purchase that is great value for money without losing anything in the quality of the service provided.
With Best Value Conveyancing, you can be sure that the full legal service is kept moving without sacrificing quality. We will assign you to one of the best solicitors to look after the legal aspects of your move, thereby ensuring the speediest process possible.
With Best Value Conveyancing, you’re in safe hands. All our quotes are fixed prices, and we tell you the price of the standard disbursements up front.
We provide affordable conveyancing services specifically designed for first-time buyers at a very competitive rate – better value than most other local firms or online firms you’d be able to find. That’s why we’re the best value. Not just cheap conveyancing, but Best Value Conveyancing. Our fees are better than anything you’ll find on the high street.
Check out our prices – they’re hard to beat, and you won’t find a better online conveyancing service for this low price!
Best Value Conveyancing offers a no completion, no fee guarantee, should your sale or purchase fall through, even if you are gazumped. Call us now on 0800 0387 007 (which is also free from mobiles) to start your first home buying journey today!
You really are in safe hands with us!
