Post on 24-Jan-2017
FIRST TIME BUYERS
UNDERESTIMATE ADDITIONAL
MOVING COSTS
The average homebuyer is left with thousands of pounds
in debt when purchasing a property, after underestimating additional costs, such
as Stamp Duty, contents insurance and solicitors’ fees.
A new study by Aviva reveals that the
average homebuyer budgets £12,143 for costs, which include
the deposit, surveys, furniture and buildings
insurance.
However, the research shows that the
average additional cost
is actually £18,624.
Over half of first time buyers in London have
asked a family member for a loan when buying a house, and the figure is
also high in the East Midlands at 43% and East
Anglia at 33%.Buyers in the
South West seem to handle their
finances better, with just a quarter (25%) saying they had to ask a family member for a loan.
“Scraping together the cash for the deposit alone can be a mammoth task, but that’s just the first hurdle. 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.” – Heath Smith, Marketing Director at Aviva
Smith continues: “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. “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.”1
The study reveals that first time buyers in East Anglia spent the longest amount of time saving for their home, at just over four years, while those in Scotland saved for just under three years. People in the South East were the least likely to give up on buying while saving at 32%, but over half (60%) of Londoners are likely to give up. Almost one in four Londoners had to take a second job to be able to afford their first home, compared to less than one in ten in Scotland. Aviva surveyed 2,000 homeowners in June.
1 http://www.propertyindustryeye.com/first-time-buyers-underestimating-additional-costs/