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Buying your first property, when’s right for you?

It could be fair to say that previous generations had a far easier time buying their first property. For many, mortgages were easier to get than they are today, there was greater choice of property within people’s price ranges and, in the days before student loans, graduates never found themselves saddled with thousands of pounds worth of debt before they started their working life. It is estimated that the average student will leave university with £44,000 worth of debt, according to a report by The Institute of Fiscal Studies and the Sutton Trust.

Along with some very gloomy predictions about the difficulties the under 30s face in buying a first home and the effect this could have on the housing market it means that now, more than ever, it’s vital to think carefully and only move into property ownership when the time is right.

In a relatively short time a mortgage adviser will be able to tell you what type and size of mortgage you are likely to be offered dependent on your salary, outgoings and other financial commitments.

Obviously debts like student loans, overdrafts and credit card balances will have a major effect on the amount you can borrow and the terms attached to any home loan. So the more you can minimise these by paying off any that you can or by waiting till your salary rises and these debts swallow up a smaller proportion of your disposable income, the better.

It’s also always felt like the longer you leave making that vital first property purchase the more impossible it will be. But there’s another school of thought that, by continuing to rent and waiting till your finances become stronger, you’ll be in a better position to enter the property market.

The Daily Telegraph, in association with the property adviser Savills, has devised an online calculator that will help you to work out whether it will be cheaper to rent or buy, dependant on a number of factors including the rent you are paying and how long you’re planning to stay in the same place. Try it and it will certainly give you some food for thought. There’s also plenty more advice online about whether it’s better to rent or buy .

So buying your first home doesn’t have to be impossible – as long as you wait until your finances are in good enough shape for it. Or perhaps, when you’ve looked into it, you’ll see that renting really would be the better option financially.  But, whichever route you take, just remember that a little planning now will pay dividends long into the future.

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