If you are in the process of planning removals or applying for a mortgage to buy a new home, then you will probably have put a great deal of thought into the financial implications of buying property. It doesn’t matter whether you are a current homeowner looking for a new place, or a tenant hoping to buy for the first time, working out how to afford your new home will be an important part of the process.
A new survey conducted with renters who were registered users of the Your Move or Reeds Rains websites has revealed just how common these financial worries are, particularly for first time buyers. According to the study, 93% of respondents, who were currently living in rented accommodation, would like to become homeowners at some point in the future, but many felt that their finances would stand in the way. Only 17% of the tenants believed that they would be able to buy a home in the next year, while 14% believed that they would never be able to buy property.
Among those of us who do make it onto the property ladder, there are a variety of different sources of financial support that can help us to make the switch from tenants to homeowners. The Your Move survey found that 45% of first time buyers managed to finance their purchase entirely by themselves. Government schemes such as Help to Buy were used by other, but only 4% of those surveyed received this form of support. The rest turned to family, with 39% using money from their parents or other family members to help with the purchase, and 7% using money from an inheritance.
Although the cost of the property itself is the major cause of these financial worries, the other costs associated with removals can also cause problems, particularly if we fail to include them in our moving budgets. Support from friends and family members can also help to reduce some of these costs, by helping with redecorating and DIY tasks, or providing childcare during removals, which can also help to keep our stress levels down.