MORE and more first-time buyers are looking for financial help from their parents. ‘We are seeing more parental assistance, either by way of cash injection or alternatively by acting as guarantors,’ said mortgage broker Pierre Blampied, director of Savills Private Finance (Channel Islands).
‘There is a weakness in the market for the older converted flats but first-time buyers are cautious about these as they have resaleability concerns and a number of lenders are loathe to lend higher amounts ‘loan to values’ on these properties.
‘With prices going up, it is getting harder for islanders to obtain a foothold on the property market.
‘The economic climate is very positive in the island, but we need to see the politicians pushing for more housing licences to be issued to continue to support the business community and the positive inflow of business to the island.’
Currently, Savills is seeing plenty of people looking to either get onto the property ladder or move up the price scale, but it accepts there is a dearth of properties to choose from.
The majority of estate agents are anticipating this to change during the early part of the year.
‘It is interesting that most new developments are fully sold out, albeit possibly over a longer period than would have been the case say three years ago,’ he said.
Estate agent Martel Maides accepted it was difficult for first-time buyers.
‘It is certainly not easy now for someone looking to buy their first property, but if you speak to someone who bought 10, 20 or even 30 years ago, they will probably tell you it was a struggle then as well,’ said local market sales negotiator Caroline Nickolls.
‘Right now, what is perhaps in their favour is that house prices are not rising at anything like the rate they have in recent years.
‘Interest rates have also passed their peak, most experts expect to see further cuts in the coming months, and the combination of these factors will bring some respite to first-time buyers,’ she said.
The type of buyer varied greatly, as did the range in which they wanted to purchase.
Some have been able to save a large deposit or perhaps borrow from family, meaning they can sometimes afford more.
‘You can’t really define an average first-time buyer.
‘You have to look at each individual and try and help them find a property that suits them,’ said Miss Nickolls.
‘Properties do still come onto the market in the £175,000 to £250,000 price range, although they tend to be snapped up fairly quickly. Above that level there are likely to be more properties available, so more choice.’
Martel Maides did recently sell a studio flat for £132,000.
‘It is no good relying on just the websites - you have to register with an agent,’ she advised potential first-time buyers.
‘Properties that we take on at the lower end of the price range often sell very quickly, in some cases before they even make it on to our website.
‘If you are registered with an agent and they know what you are looking for, they will be able to let you know as soon as they receive an instruction.’
Article posted on 9th January, 2008 - 12.00am
Loading ...
Most Commented: