GETTING the keys to your first home can feel a near-impossible task after saving thousands for a deposit and then going through the gruelling home-buying process.
But TV property guru Phil Spencer has revealed that many first-time buyers make simple mistakes that make the whole thing even more difficult.
A complicated system of taxes, surveyors and loans can leave many would-be homeowners overwhelmed.
Meanwhile, the enormous costs that come with it can prevent many people from getting their foot on the housing ladder in the first place.
Property expert and TV personality Phil Spencer has been helping first-time buyers to navigate the process for more than 30 years.
In an exclusive interview with The Sun following the launch of his new YouTube channel, First Home Focus, he has revealed the biggest mistakes he often sees, and his top tips to help first-time buyers get their place as quickly as possible.
Mr Spencer said one of the big blunders many buyers make is viewing properties too soon, as they end up making offers without doing enough research.
“In the excitement to go house hunting, many first-time buyers go to view properties too early,” he said.
“The danger is that if you haven’t done your research thoroughly enough then you start looking at places you can’t really afford. I see that happen too often,” he explained.
Add up how much you have saved as a deposit then use a mortgage calculator to see how much you could borrow from a bank.
Include any money you may be given from parents or grandparents in these calculations.
Then narrow down properties in your price range before you tour any houses to make sure you can actually afford them.
It’s important to do some research into the property market and how much houses in your area cost before you go to any house viewings Mr Spencer suggests.
“There’s a danger you can end up blanket covering vast areas without any real focus,” he warns.
“Then, you’re not comparing like with like because you are moving around, looking at different types of property in different price brackets.”
Narrow down what you are looking for and what types of homes are available in your town or city before you go to any viewings.
TV property expert Phil Spencer shares his top tips when viewing a house.
I always encourage people to look for a property that is going to suit them for as long a time as possible.
Life changes very quickly between the ages of 25 to 35.
What is important to you right now might not be important in five years’ time.
It’s really important to try and think forward to what your life might look like in the future.
It’s a mistake to think that you’re going to have the same job for the next ten years or go to the same pub or gym.
In five years’ time, that might not be true.
Don’t focus on what’s convenient for your lifestyle now and look as long term as possible.
Try and choose a property that will give you flexibility as life evolves.
Ask yourself these questions:
Don’t get too bogged down in minor things that are not going to affect the value of the property, for example if the windows need redecorating or the carpets are filthy.
A lot of buyers will be put off by these things.
Concentrate on the size of the rooms, the proportions and how it suits you.
The chances are during the time that you live there you will make cosmetic changes to suit you, your lifestyle and your tastes.
Doing so can help you to avoid falling in love with a property that you can’t afford, is overpriced or doesn’t really meet your requirements.
It can also help you to decide if you need to compromise on the area you want to live in, how much space you need or your budget.
“I always encourage first-time buyers to look for opportunities to add value,” Mr Spencer said.
For example, you could renovate a kitchen, add an extension or do a garage conversion.
But make sure you have the money to do the work before you put an offer in.
“Anything that you can do to make a property bigger or refurbish parts of the house can add value,” he said.
“But a lot of buyers go for a fixer upper as they see a lot of potential. Then they realise that they don’t have the money to do any of the work they want to do.”
When doing your research, check on websites such as B&Q and Wickes, which have calculators to check much it would cost to refurbish the house, before you put in an offer.
Another option is to buy in an area which could increase in value over time, Phil advises.
“Buy in an area that you feel is going to change and improve during the time that you live there,” he said.
As the value of properties around you rise so could the amount your home is worth.
Dover in Kent, Thurrock in Essex and Waltham Forest in London all saw prices rise substantially from 2012-2022 according to online property portal Zoopla.
But this could take years to happen and is not guaranteed so it should not be the main reason you purchase a home in that location.
There are several government schemes available to first-time buyers so check if you are eligible before you start your property search.
“There’s a lot of help out there, including savings accounts and shared ownership schemes,” Mr Spencer said.
One option is to save into a Lifetime Individual Savings Account (LISA).
These are special savings accounts which allow you to put money aside to buy your own home or for retirement.
You must be aged between 18 and 39 to open a LISA but you can pay into it until you are 50.
The maximum amount you can up in each year is £4,000 but the government will add a 25% bonus to your savings, up to a maximum of £1,00 a year.
But there is a penalty for taking money out of a LISA if you are not putting it towards a deposit.
Another option is to buy a shared ownership home.
This is where you buy a portion of a home’s value from a landlord, who is usually the council or a housing association.
You then pay rent on the remaining share.
You need a mortgage to pay for your share, which can be between a quarter and three-quarters of the home’s full value.
A reduced rent is charged on the share you don’t own.
Later on you can choose to buy a bigger share of the property’s value, up to 100% of its value.
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