|
FTBs urged to show caution
7 May 2008 12:01
First-time buyers (FTBs) need to fund their purchases in the correct way and only climb onto the property ladder when the time is right, an online change of address services has warned.
According to a recent poll by iammoving.com, whereas over two out of five FTBs use their savings to pay for their deposit on their first home, one in eight take the risk of meeting this up front cost using an unsecured loan or a credit card.
The website's Peter Beckett responded that the property market is now at a turning point, with new buyers seeking ways to get onto the ladder, but he urged them not to do so on the back of unsecured debt unless they are wholly confident in their job security.
Instead, Mr Beckett advised that FTBs could finance house purchases using savings, or perhaps with parental support or through a family loan, while noting that another option is for them to buy a property with someone else.
He also suggested that they should wait and gauge the market before committing to buying, explaining that if they did rush into purchasing a home now, they could ultimately find themselves with negative equity on their property.
|
