FIRST-time buyers could be the owners of a massive 10-bed home with just a £7,800 deposit.
The huge three-storey house is on the market for just £78,000 – a third of the average property price in the UK, which currently stands at £267,000, according to the Office for National Statistics (ONS).
Lenders typically require first-time buyers to put down a 10% deposit, which on this property comes in at under £10,000.
It’s far less than the average new homeowner deposits, which last year was £57,278, according to Halifax.
Buyers won’t have to pay stamp duty on it either as it falls well under the £500,000 threshold.
However, it’s worth noting that the house, which is listed on Zoopla, is available to buy at auction, which means you may actually end up forking out more than the guide price.
Other bidders may push up the price and there will be extra fees to think about if you’re successful, such as charges from the auctioneer.
While it is possible to get a mortgage for a house bought at auction, it can be difficult depending on the conditions set by the lender.
Many won’t let you use a loan to buy a home in a derelict condition, according to auctionhouse.co.uk, so it’s important to do your research before going under the hammer.
Still interested? The Blackpool house is in need of some updating which will need to be factored into your budget.
On the ground floor, there’s an entrance hall, large open plan reception room and a kitchen.
There’s also the first bedroom, which could be used as a second reception room, as well as a family-size bathroom.
On the first floor, there are five bedrooms and a bathroom with a separate toilet.
Head upstairs to the second floor and you’ll find another four bedrooms.
The property has gas central heating and is already double-glazed throughout.
There’s only a small yard around the back though, so there’s not much room for young ones to run around in.
OK, so a 10-bed house may be too big for a first-time buyer to consider on their own, although it is advertised as a “family home”.
What help is out there for first-time buyers?
GETTING on the property ladder can feel like a daunting task but there are schemes out there to help first-time buyers have their own home.
Help to Buy Isa – It’s a tax-free savings account where for every £200 you save, the Government will add an extra £50. But there’s a maximum limit of £3,000 which is paid to your solicitor when you move. These accounts have now closed to new applicants but those who already hold one have until November 2029 to use it.
Help to Buy equity loan – The Government will lend you up to 20% of the home’s value – or 40% in London – after you’ve put down a 5% deposit. The loan is on top of a normal mortgage but it can only be used to buy a new build property.
Lifetime Isa – This is another Government scheme that gives anyone aged 18 to 39 the chance to save tax-free and get a bonus of up to £32,000 towards their first home. You can save up to £4,000 a year and the Government will add 25% on top.
Shared ownership – Co-owning with a housing association means you can buy a part of the property and pay rent on the remaining amount. You can buy anything from 25% to 75% of the property but you’re restricted to specific ones.
“First dibs” in London – London Mayor Sadiq Khan is working on a scheme that will restrict sales of all new-build homes in the capital up to £350,000 to UK buyers for three months before any overseas marketing can take place.
Starter Home Initiative – A Government scheme that will see 200,000 new-build homes in England sold to first-time buyers with a 20% discount by 2020. To receive updates on the progress of these homes you can register your interest on the Starter Homes website.
But it could also be an opportunity for friends to purchase together.
We’ve previously spoken to pals Toby Hamly and Sam Bennett who clubbed together to buy their £280,000 two-bed house.
Normally, lenders will only allow up to four people to apply for any one mortgage, but the Home Booster loan from start-up lender Generation Home will allow up to six people.
It’s recommended that friends purchasing property together buy as “tenants in common” rather than “joint tenants”, which means that their share of the house can pass to their next of kin if anything was to happen to them.
Alternatively, the new homeowners could choose to rent out the rooms to lodgers to generate some extra income.
Under the government’s rent a room scheme, you can earn up to £7,500 a year tax-free. If you earn more than this, you will have to declare the income and file a tax return.
How much tax you pay depends on your other sources of income and how much you earn.
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While you can sometimes get the keys to some bargain properties at auction, you may be better off haggling on the traditional market.
Mahim Hossain bought his house aged 24 for £270,000 after knocking £20,000 off the asking price.
Last week, we took a look around Zoopla’s cheapest family-size home with three bedrooms and a garden for sale for £40,000.