TV property guru Phil Spencer reveals the five most common mistakes first-time buyers make and how to avoid them

GETTING the keys to your first home can seem like an almost impossible task after saving up thousands for a deposit and then going through the grueling process of buying a home.

But TV property guru Phil Spencer has found that many first-time buyers make simple mistakes that complicate matters further.

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The complex system of taxes, surveyors and loans can baffle many potential homeowners.

Meanwhile, the huge costs associated with this could prevent many people from getting on the housing ladder at all.

Property expert and TV presenter Phil Spencer has been helping first-time buyers navigate the process for over 30 years.

In an exclusive interview with The Sun following the launch of his new YouTube channel First Home Focus, he revealed the biggest mistakes he often sees and gave his top tips to help first-time buyers secure their place as quickly as possible.

Don’t look too early

Mr Spencer said one of the biggest mistakes many buyers make is viewing properties too early as they end up making offers without doing enough research.

“In the excitement of finding a home, many first-time buyers go to view properties too early,” he said.

“The danger is that if you haven’t done enough research, you’ll start looking at places you really can’t afford. I see this happen too often,” he explained.

Calculate the amount you have saved in a deposit, then use a mortgage calculator to find out how much you could borrow from the bank.

Include in these calculations any money your parents or grandparents may give you.

Then narrow down the properties in your price range before touring homes to make sure you can actually afford them.

Compare similar properties

Before you go to see Mr. Spencer’s homes, it’s important to do a little research on the real estate market and find out what homes in your area are worth.

“There is a danger that you could end up covering large areas without any real purpose,” he warns.

“Then you’re not comparing like with like because you’re moving around looking at different types of properties at different price points.”

Before you start viewing, determine what you’re looking for and what types of homes are available in your area.

This will help you avoid falling in love with a property that you can’t afford, is overpriced, or doesn’t meet your needs.

It can also help you decide if you need to compromise on the area you want to live in, how much space you need, or your budget.

Strive to add value

“I always encourage first-time homebuyers to look for opportunities to add value,” Mr. Spencer said.

For example, you could renovate your kitchen, add an extension, or convert your garage.

But before you make an offer, make sure you have the money to get the job done.

“Anything you can do to increase the size of the property or renovate parts of the home can add value,” he said.

“But many buyers choose fixer-upper because they see great potential. Then they realize they don’t have money for the work they want to do.”

When doing your research, check websites such as B&Q and Vicks that have calculators to check how much it will cost to renovate a home before you make an offer.

Buy in an area where prices are likely to rise.

“Another option is to buy in an area that may increase in value over time,” advises Phil.

“Buy in an area that you think will change and improve while you live there,” he said.

As property values ​​around you increase, the value of your home may also increase.

In Dover in Kent, Thurrock in Essex and Waltham Forest in London, prices rose significantly between 2012 and 2022, according to online property portal Zoopla.

But it can take years and it’s not guaranteed, so it shouldn’t be the main reason for buying a home in this location.

Use government schemes

There are several government schemes available to first-time buyers, so check your eligibility before you start your property search.

“There is a lot of help available, including savings accounts and shared ownership schemes,” Mr Spencer said.

One option is to save money in a Lifetime Individual Savings Account (LISA).

These are special savings accounts that allow you to put money toward buying your own home or for retirement.

To open a LISA, you must be between 18 and 39 years old, but you can pay into it until you are 50 years old.

The maximum amount you can save in a year is £4,000, but the government will add a 25% bonus to your savings, up to a maximum of £1,000 a year.

But there is a penalty for withdrawing money from a LISA if you don’t deposit it.

Another option is to buy a house in shared ownership.

Here you buy part of the value of the house from the landlord, who is usually the council or housing association.

You then pay rent for the remaining share.

You’ll need a mortgage to pay for your share, which can be between a quarter and three-quarters of the home’s total cost.

The reduced rent is charged for the share you do not own.

In the future, you will be able to buy a larger share of the property’s value, up to 100% of its value.

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