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Should first-time buyers purchase new homes?

18 February 2020

You'll never forget your first home, just like your first car it may be something to smile about in the future but it will represent way more than the first set of keys to you, that's for sure. 

Remember: there's a very special thing about property. It provides stability, 'a roof over your head' somewhere to call 'base camp', but it must not tie you down, it must enable your adventures. 

Flexibility is key in life, the ability to duck and dive, follow your dreams and change direction if needs be. 

It concerns me that first-time buyers are being steered towards new homes therefore, as just like a new car, for the same money you can afford less quality and it may dip in value after purchase. 

Signing up to anything for a long time when you are young is a difficult decision, signing up to the unknown is stupidity. I see many first time buyers buy new homes and end up in negative equity because of the urgent need to move.  Health, work, family or relationships can influence this.  Most of which young people have very little control over.  There is a restriction with Help to Buy in that means you cannot let out the property, the buyer must live in it, so if you are in negative equity or the property will not sell, then what?

My advice would be to buy a property that isn't so perfect or new and look for something that you can add value to, perhaps something cheaper. You don't have to be a DIY genius to make a difference to a property, making a home of a property adds the most value of all.  Keep in mind the possibility of the unknown happening and plan for it.  Stay free of tie-ins, restrictions and covenants as much as you can and remain flexible in your approach to property. 

Amy Dixon, the CEO of iMOVEHOME - for more advice follow Amy on LinkedIn.

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