Tue 26 Mar 2019 View all news articles
Buying your first home is an exciting time. However, with thousands of properties to choose from, how do you go about making the right decision for you and your family?
If your parents are contributing to the purchase, then this can add an additional layer of complexity. It’s estimated that 60% of first-time buyers receive help from the Bank of Mum and Dad, but with this help sometimes comes an expectation as to the sort of property you ought to be buying.
In our guide we look at how parental gifts can throw up challenges, and we share loads of great tips to help you find the right home first time. Keep reading to find out more.
Parental gifts can throw up a range of challenges
As a first-time buyer, buying a property – particularly in London – can be tough. So, it’s perhaps no surprise that more and more parents are either lending money to their children or gifting them part or all of the purchase price.
If you’re committing a large portion of your savings/income to a purchase, it’s important that you make the right decision. If your parents are contributing funds also, it can make the choice doubly difficult.
Property search expert Sara Ransom says that she is increasingly being asked to help children find properties by parents who are gifting money towards the purchase. She says: “The danger for a buyer who feels no financial pain is that their decisions may be less considered.
“We have helped two such families in the recent past. The parents wanted their children to conduct the search, with our professional advice, and to understand all the ramifications of the investment and the property choice.
“We helped the children prepare something akin to a business plan, justifying the kind of property, the location, and demonstrating that they realise the long-term value of the gift,” she adds.
Essential first-time buyer property search tips
When looking for your first home, it’s important that you carefully consider the requirements you have for your home.
Sara says that first-time buyers must understand that the right property needs ‘to meet many requirements, not just a cool apartment in a hip location that looks exciting right now. Understanding that a property purchase should be a long-term decision is vital.’
She adds: “Buyers should also make sure the property they choose is relevant to the area, for both resale and rental purposes. Life plans can change so dramatically at an early age that it makes sense to buy a property that will perform well in the rental market.”
Other tips that will help you with your property search include:
As leading Wirral estate agents and lettings agents we have plenty to talk about and like to give our opinions on a few things too! Read about what we have to say, our latest news and industry news.