First time buyers concede defeat when buying a property |
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Published
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Fri, 13 May 2005 16:00
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Stagnation within the property does not seem to have solved any problems for buyers looking to purchase their first property. According to a survey, first-time buyers are not being able to purchase the house of their desires and are instead compelled to settle for less than what they actually want.
The yearly first-time buyer report published by lender Bradford & Bingley revealed that as many as 9 out of 10 first time buyers were unable to possess the property of their choice since property prices were still escalating beyond their saving capacities, according to 43% of the customers. Meanwhile, almost one third of the buyers were unable to negotiate with sellers adequately, to get a lower sale price.
| The research elucidated that out of the 1,227 first-time buyers surveyed, about 33% admitted that they had purchased a house in a locality that was not akin to what they actually desired. Meanwhile, 28% buyers were forced to make property purchases at distances further beyond the town against their wishes. Another 14% had compromised on a place that was much smaller than what they required.
It was also clarified by the survey that buyers were striving hard to gather enough savings to make their first property purchase, with an unfortunate 44% of first-timers occupied in the repayment of other debts. While about 22% confessed that they had no savings and would thereby need a 100% mortgage for their property, 31% of first-time buyers were found with considerably small savings, battling to accumulate funds for property alongside current rent payments.
Thus, about 43% of buyers believed that house prices were increasing at a higher pace than their savings in spite of the recent news of the inflation rate of the property market going down. Lender, Bradford & Bingley has advised first-time buyers to purchase their desired property at their choice of price, by enforcing their ‘strong bargaining position’.
Duncan Pownall, mortgage development manager for Bradford & Bingley, said, "With the ability to move quickly without a long chain, first-time buyers are essential to the property market. Many don't realise they are in a strong bargaining position - especially with the softening in the housing market - and are failing to negotiate on asking price. This means they could be paying literally thousands of pounds more than they need to."
In another research conducted by lender Egg, buyers anticipated to acquire about three homes in their life span. While more than 35% of homeowners expected to own around three to five properties in their lives, a meager 6% hoped to be able to purchase more than five homes.
It was also revealed by the research that on an average, a buyer moved into his own home at the age of 38 with family. Nevertheless, reports by Halifax suggested that the average age of a first time buyer was 34 and in Scotland, buyers went on to make their first property purchases even later at 37.
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