UK: First time buyers blow the budget by ?6,500
Almost three quarters of the 2,000 home-owners surveyed under-estimated the costs needed to buy a first home, with most of those saying they had only planned for the deposit.
As a result, more than half were forced to wait an extra two years and eight months before finally having the cash to get on the property ladder.
Almost half confessed to coming close to giving up plans to buy their first home altogether.
First-time buyers typically take nearly four years saving for a first home – banking an average 12,143 during that time. In reality though, the average total amount actually needed is closer to 18,624.
With three quarters admitting to not doing enough research into the total cost of buying a home, Aviva launched its online First Home website which includes a step-by-step guide to buying a first home and a mortgage jargon buster.
“Scraping together the cash for the deposit alone can be a mammoth task, but that’s just the first hurdle”, said Heather Smith, marketing director at Aviva. “It’s the other essential costs such as solicitors’ fees and Stamp Duty which can be the sting in the tail – not forgetting any essential repairs which might be needed once the keys have been handed over.”
Homeowners spend an average 3,727 on essential repairs to their newly purchased home - typically forking out around 1,680 more than expected. One in five looking to buy their first home now would consider buying a house which needed significant DIY or repairs, just to get on the property ladder.
“First-time buyers face walking into a money pit if a first dream home turns out to be a nightmare. If the cash outlay needed to buy the house isn’t expensive enough, a hefty bill for unforeseen essential repairs is the last thing needed”, continued Heather Smith.
“Anyone looking to buy a home should investigate every nook and cranny of the property before putting in an offer and must not be afraid of asking for several viewings”.
Home buyers could avoid unforeseen expensive repairs by using Aviva’s online House viewing checklist; an interactive tool which lists potential maintenance trouble to look out for.
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