0:00:02 > 0:00:03It's estimated that, last year,
0:00:03 > 0:00:08over 100,000 of you under 30 became first-time buyers.
0:00:08 > 0:00:11And I know that almost all of you
0:00:11 > 0:00:14aspire to pick up the keys to your own home.
0:00:15 > 0:00:18'Is that a structural survey you need doing?
0:00:18 > 0:00:19'It's the buyer's survey.'
0:00:19 > 0:00:21Pretty sure I said industrial.
0:00:21 > 0:00:25'You're buying a house, not an industrial unit.'
0:00:25 > 0:00:27- 50p? You're joking. Put it in for deposit.- Is it?
0:00:27 > 0:00:30No, you know what it actually is? It's a party popper.
0:00:30 > 0:00:33HE LAUGHS
0:00:33 > 0:00:36And that's what this programme is all about -
0:00:36 > 0:00:39telling you what you need to know about property renting and buying,
0:00:39 > 0:00:41as well as catching up with our
0:00:41 > 0:00:44wannabe home owners here in this amazing
0:00:44 > 0:00:48city of Leeds, as they desperately try to get on the property ladder.
0:00:52 > 0:00:54I came in with a cheeky offer of 110.
0:00:54 > 0:00:56Unfortunately, that got rejected.
0:00:56 > 0:01:00I think I can stretch to 115,500.
0:01:00 > 0:01:02I didn't know that you had a search on,
0:01:02 > 0:01:05that you're not at risk of radioactivity!
0:01:05 > 0:01:08I think this is going to be difficult.
0:01:17 > 0:01:20Last week, our Leeds residents took their first steps towards
0:01:20 > 0:01:22getting a foot on the property ladder.
0:01:22 > 0:01:25This week, they're farther down the buying process,
0:01:25 > 0:01:28but we've still got more tricks of the trade to help them
0:01:28 > 0:01:32seal the deal, so they can pick up the keys to their first home.
0:01:33 > 0:01:36So, will self-employed roofer Craig
0:01:36 > 0:01:37and his girlfriend Sarah find
0:01:37 > 0:01:41a 5% deposit mortgage scheme?
0:01:41 > 0:01:42Will 23-year-old Ailsa
0:01:42 > 0:01:45successfully navigate her way through all
0:01:45 > 0:01:47the housing jargon and finally move into
0:01:47 > 0:01:50her first home with her best mate Lauren?
0:01:50 > 0:01:52And we're saying our very
0:01:52 > 0:01:53first hello to Shree,
0:01:53 > 0:01:57who's struggling to find his perfect bargain bachelor pad.
0:01:59 > 0:02:03Helping all our would-be savers and buyers is Richard Fenton.
0:02:03 > 0:02:05He's got 15 years of financial experience
0:02:05 > 0:02:08and will be with them every step of the way.
0:02:10 > 0:02:16On average, people buy their first property around the age of 37.
0:02:16 > 0:02:22You think the ideal age to get on the property ladder is 27 or less.
0:02:22 > 0:02:24So that's a massive difference.
0:02:24 > 0:02:29I know that, because you told me in a nationwide housing survey
0:02:29 > 0:02:32we carried out among 18 to 29-year-olds.
0:02:32 > 0:02:36I also learnt that, in order to save some dosh for a house deposit,
0:02:36 > 0:02:38more young gentleman than ladies
0:02:38 > 0:02:42still live at home with Mum and Dad.
0:02:42 > 0:02:45Nothing to do with the laundry, I'm sure.
0:02:45 > 0:02:50So, if you fancy owning your own place before you're 37,
0:02:50 > 0:02:55we're here to provide some solutions for you that might help -
0:02:55 > 0:02:59schemes such as only needing a 5% deposit, buying with
0:02:59 > 0:03:05mates and how to rent in some of Britain's most expensive cities.
0:03:05 > 0:03:09But, before I indulge any more interesting titbits,
0:03:09 > 0:03:12we're off to Leeds to see how
0:03:12 > 0:03:15our wannabe first-time buyers are getting on.
0:03:24 > 0:03:2824-year-old Shree has been carefully saving for years
0:03:28 > 0:03:32and is currently living just outside Leeds in Harrogate.
0:03:32 > 0:03:36Harrogate is a lovely town, it's an old spa town
0:03:36 > 0:03:39and it has a lot older demographic.
0:03:39 > 0:03:41It's not really designed for a 24-year-old.
0:03:42 > 0:03:46So, he's desperate to swap the cream tea brigade for the bright
0:03:46 > 0:03:48lights of the city centre.
0:03:48 > 0:03:50Leeds, on the other hand, is...
0:03:50 > 0:03:53It's got two unis, it's full of young, vibrant people
0:03:53 > 0:03:57and that's where I want to explore more, really.
0:03:58 > 0:04:00And I'm in a very fortunate position
0:04:00 > 0:04:02where my parents are helping me out
0:04:02 > 0:04:05and I've got some money saved away myself,
0:04:05 > 0:04:09so I'm putting those two together to put together a deposit for a place.
0:04:10 > 0:04:15Shree's mission is to find and buy this type of professional city boy
0:04:15 > 0:04:20pad, a chic apartment with all the mod cons in the heart of the action.
0:04:20 > 0:04:23'I think I can drive a bargain.
0:04:23 > 0:04:26'I would typically go 20 to 25 grand below with my first offer.'
0:04:26 > 0:04:30# Am I crazy or am I blind... #
0:04:30 > 0:04:33Was I close with the offer or...
0:04:33 > 0:04:37My offer was, she said, several thousand pounds under.
0:04:37 > 0:04:40Every seller's different. They'll be some people who desperately need to
0:04:40 > 0:04:42sell in order to get their new place
0:04:42 > 0:04:45and they'll be some people who are trying to just free up cash.
0:04:45 > 0:04:49They don't need to sell, so they want more for the flat.
0:04:50 > 0:04:52Time for Richard to meet Shree
0:04:52 > 0:04:56and find out where he is on his property adventure.
0:04:58 > 0:04:59- Shree.- Rich.
0:04:59 > 0:05:00Hi, pleased to meet you.
0:05:01 > 0:05:04With your deposit between 20 and 30,000,
0:05:04 > 0:05:07what are you looking at in terms of the purchase price?
0:05:07 > 0:05:13So, if I'm looking at places, flats listed for around 150, 140K
0:05:13 > 0:05:16I would go in for a 120 offer,
0:05:16 > 0:05:18to start off with, maybe push up.
0:05:18 > 0:05:21And because there's such an abundance of these properties,
0:05:21 > 0:05:25I'd rather do that several times
0:05:25 > 0:05:28until hopefully, maybe, someone is just desperate to sell
0:05:28 > 0:05:33and I get lucky and get one for around 125, maybe 130.
0:05:33 > 0:05:38So, you're hoping to go in and shave off as much as 15,
0:05:38 > 0:05:41- £20,000 off the asking price. - Yeah.- Right, OK.
0:05:41 > 0:05:43- So you're out for the bargain.- Yeah.
0:05:43 > 0:05:46I think you should always be out for the bargain, no matter what you do.
0:05:46 > 0:05:49We were hovering around a figure with the deal
0:05:49 > 0:05:52of around about 125,000. That made me think...
0:05:52 > 0:05:55- There is a reason. - I'm loving this. There is a reason.
0:05:55 > 0:05:57- Tell me the reason. - Stamp duty.- Brilliant.
0:05:57 > 0:06:01- Fantastic.- I would like to not...
0:06:01 > 0:06:03Not pay it.
0:06:03 > 0:06:05Yeah, keep as much money as I can to myself.
0:06:05 > 0:06:08- All right, that's brilliant. - That's pretty much it.
0:06:08 > 0:06:12I was hoping that was the decision, so that's absolute music to my ears.
0:06:12 > 0:06:14More on stamp duty in a minute.
0:06:14 > 0:06:17Shree seems really clued up on the property game.
0:06:17 > 0:06:19He's got a good deposit of around 30 grand
0:06:19 > 0:06:23and has been looking at flats around the £140,000 mark.
0:06:23 > 0:06:26I think the thing that's really stood out for me
0:06:26 > 0:06:29with Shree is that it's the deal and that's what he's looking for.
0:06:29 > 0:06:32He's looking to get himself a bargain.
0:06:32 > 0:06:34I don't think he's going to buy unless he feels
0:06:34 > 0:06:36he's got extremely good value for money.
0:06:36 > 0:06:40It's kind of nice having someone with Richard's pedigree telling me
0:06:40 > 0:06:45that I'm on the right path and I'm making the right decisions.
0:06:45 > 0:06:49But, the one offer he's already put in a flat in Leeds was rejected,
0:06:49 > 0:06:51so is he being too optimistic
0:06:51 > 0:06:53about bagging a bargain?
0:06:54 > 0:06:59- Richard, welcome again to the lounge.- It's good to be back.
0:06:59 > 0:07:02What point was Shree making about stamp duty?
0:07:02 > 0:07:06Well, it's a tax that the government adds to all properties over
0:07:06 > 0:07:09and above 125 grand.
0:07:09 > 0:07:11And it has to be paid when you exchange contracts.
0:07:11 > 0:07:16So, any property under the magic 125 grand, you don't
0:07:16 > 0:07:18- have to pay a bean in tax? - Absolutely.
0:07:18 > 0:07:20And there is a bit of good news.
0:07:20 > 0:07:24Some mortgage lenders will even pay your stamp duty as an incentive.
0:07:24 > 0:07:26Cracking tips, Richard, thank you so much.
0:07:26 > 0:07:30Before we head back to Leeds to see our wonderful residents,
0:07:30 > 0:07:34I sent Radio 1's Tina Daheley on a little property mission.
0:07:37 > 0:07:40We know that lots of you can't afford to buy at the moment,
0:07:40 > 0:07:42so we're looking at renting too.
0:07:42 > 0:07:44We also know that thousands of you need to
0:07:44 > 0:07:48live in or around the big cities for work.
0:07:48 > 0:07:49So, how do you find somewhere
0:07:49 > 0:07:51that's affordable, in a good area
0:07:51 > 0:07:53and not a complete dive?
0:07:53 > 0:07:56I've come to the most expensive city in the UK to find out.
0:07:56 > 0:07:58Hello, London!
0:07:59 > 0:08:02It might not be everybody's cup of tea,
0:08:02 > 0:08:04but you can't deny London is bursting with energy.
0:08:04 > 0:08:08More than eight million people live here, speaking over 100 languages,
0:08:08 > 0:08:12but property is expensive, therefore renting is too.
0:08:12 > 0:08:16Belgravia, Primrose Hill, Mayfair might take your fancy.
0:08:16 > 0:08:21How about a penthouse at One Hyde Park for 140 million?
0:08:21 > 0:08:23For me, it's all about Chelsea.
0:08:23 > 0:08:27I'm about to check out this place, worth just £11 million.
0:08:28 > 0:08:32'It's a three-bedroom apartment, split over two levels.'
0:08:33 > 0:08:35Oh, my goodness!
0:08:37 > 0:08:40I can see myself entertaining here.
0:08:40 > 0:08:42So, this is what you get for 11 million.
0:08:43 > 0:08:45Walk-in wardrobe.
0:08:47 > 0:08:48Very nice.
0:08:48 > 0:08:51'It's got super luxurious bathrooms.'
0:08:52 > 0:08:53It's the toilet.
0:08:55 > 0:08:58Even if you've got £11 million, rich people still have to go.
0:09:00 > 0:09:03'There's also two terraces, but that's not all.'
0:09:03 > 0:09:06There's an actual hot tub down there.
0:09:07 > 0:09:11This is gorgeous. But, let's be real. It's just dreaming.
0:09:11 > 0:09:13Wages here may be higher,
0:09:13 > 0:09:16but the gap between average income and average house price
0:09:16 > 0:09:19is still the widest in the UK, which means
0:09:19 > 0:09:23central London has the lowest level of home ownership in Britain.
0:09:23 > 0:09:26That's why so many of us rent.
0:09:26 > 0:09:30The average rent for a one-bedroom place is around £1,100 a month,
0:09:30 > 0:09:34way too expensive for most of us, so bring on the flatmates.
0:09:34 > 0:09:36But what if you've come to this
0:09:36 > 0:09:38magnificent city and don't know a soul?
0:09:38 > 0:09:39This is one solution.
0:09:39 > 0:09:41Speed dating for flatmates.
0:09:41 > 0:09:43I'm going to try it.
0:09:44 > 0:09:46'It's called speed flatmating and happens every
0:09:46 > 0:09:51'week across the capital and it's for landlords and tenants.'
0:09:51 > 0:09:55And now, love, you could be my roommate. Is that possible?
0:09:55 > 0:09:57Well, I don't know enough about you yet.
0:09:57 > 0:09:59Ideally, I'm looking for two girls, as they have...
0:09:59 > 0:10:00Whoa, whoa, whoa.
0:10:02 > 0:10:03SHE MOUTHS
0:10:05 > 0:10:08- Looks like a nice place. - It is a nice place.
0:10:09 > 0:10:12- I live with a Romanian guy right now.- OK.
0:10:12 > 0:10:14And he says he loves Indian girls.
0:10:14 > 0:10:16I don't know if that's a good or a bad thing.
0:10:16 > 0:10:21So, surprisingly, that was not as intimidating as sitting on someone's
0:10:21 > 0:10:25sofa, being grilled about whether or not you're a good flatmate
0:10:25 > 0:10:27or a bit of a psycho.
0:10:27 > 0:10:30So, speed flatmating gets the thumbs up from me.
0:10:32 > 0:10:35Flat sharing with strangers, though, isn't for everyone.
0:10:35 > 0:10:38I went to meet out-of-towners Laura and Paul.
0:10:38 > 0:10:39They're best mates,
0:10:39 > 0:10:43both 24 and think they've cracked the city rental rat race.
0:10:43 > 0:10:46After a couple of weeks of looking, they found their perfect pad.
0:10:46 > 0:10:49It cost 1,250 a month
0:10:49 > 0:10:52and is five and a half miles from the centre of town.
0:10:52 > 0:10:55How did you feel about paying so much to rent in London?
0:10:55 > 0:10:58We wanted to be a bit closer to the city, so we were quite happy
0:10:58 > 0:11:01to pay a little bit more for that good location.
0:11:01 > 0:11:04- Do you think you found a good deal? - Yeah.- I think so, yeah.
0:11:04 > 0:11:07I think we got quite lucky with the flat we got, so we're really pleased, yeah.
0:11:10 > 0:11:14For their money, they get two double bedrooms and a balcony.
0:11:16 > 0:11:20What would your top tips be for finding a place to live?
0:11:20 > 0:11:23I think the two things that you need to have are
0:11:23 > 0:11:24your money ready to go
0:11:24 > 0:11:28and your references need to know that they'll be contacted
0:11:28 > 0:11:30to get all the paperwork sorted,
0:11:30 > 0:11:33because from when we put the offer in,
0:11:33 > 0:11:35we had 24 hours to have all that sorted, which you think is
0:11:35 > 0:11:38lots of time, but it's not really, when you have to do it.
0:11:38 > 0:11:41Especially if you're working full-time, as well.
0:11:41 > 0:11:43That was quite a stressful afternoon,
0:11:43 > 0:11:45but we managed to get it done.
0:11:45 > 0:11:48- You have to be decisive.- Decisive. - Definitely.- And organised.
0:11:49 > 0:11:52Finding a place to rent in London was easy for Paul and Laura,
0:11:52 > 0:11:56but getting the rental rat race right is a tricky game,
0:11:56 > 0:11:59so I've got a couple more top tips to finding that perfect place.
0:11:59 > 0:12:03Lettings agents are specialist and useful,
0:12:03 > 0:12:05but watch out for expensive admin fees -
0:12:05 > 0:12:07things like charges for credit checks,
0:12:07 > 0:12:11drawing up inventories, final cleaning or just handing over a key.
0:12:12 > 0:12:16Smartphones mean all those useful property apps can travel with you
0:12:16 > 0:12:18and they're updating all the time.
0:12:18 > 0:12:20You can react fast and you'll need to,
0:12:20 > 0:12:24because several properties will go before you even arrive to view them.
0:12:25 > 0:12:27And don't rule out the old school.
0:12:27 > 0:12:29Newspapers, especially local, are good,
0:12:29 > 0:12:32and don't forget specialist listings too.
0:12:32 > 0:12:33Every little bit helps.
0:12:34 > 0:12:37But is value for money more important than postcode?
0:12:37 > 0:12:40This is Mission: Get Your Money's Worth.
0:12:40 > 0:12:43One of the things I'm always hearing is, "Go and see the suburbs.
0:12:43 > 0:12:46"The further out you go, the better value you get."
0:12:46 > 0:12:48So, I've come to Croydon.
0:12:48 > 0:12:51It's one of London's more affordable boroughs to rent in
0:12:51 > 0:12:54and is 45 minutes out of town, but with trains running through
0:12:54 > 0:12:57the night, transport shouldn't be an issue
0:12:57 > 0:12:58and there's buses and trams too.
0:12:58 > 0:13:00'So, what would the money Paul and Laura
0:13:00 > 0:13:02'are spending in Clapham have got them here?'
0:13:04 > 0:13:05Wow.
0:13:06 > 0:13:09This is less than ten miles from central London
0:13:09 > 0:13:14and it's the same price as the flat Paul and Laura are renting.
0:13:14 > 0:13:18I didn't realise there'd be this much of a difference for exactly
0:13:18 > 0:13:22the same money and the difference of about six or seven miles.
0:13:22 > 0:13:26It's not as trendy, the suburbs aren't. Croydon, not necessarily.
0:13:26 > 0:13:27But...
0:13:28 > 0:13:31I'd no idea you could get properties like this.
0:13:33 > 0:13:36This place is seriously lush, but we're all different
0:13:36 > 0:13:39and it's all about deciding what your priorities are.
0:13:39 > 0:13:42Do you want to be close to your friends, a Tube,
0:13:42 > 0:13:45a park or do you want to avoid a long commute to work?
0:13:45 > 0:13:47All those decisions will affect the price you pay.
0:13:56 > 0:13:59Time to head back to Yorkshire and reacquaint ourselves
0:13:59 > 0:14:03with 23-year-old Ailsa and her best friend Lauren.
0:14:03 > 0:14:06They currently live in this back-to-back terrace house,
0:14:06 > 0:14:08but are keen to leave the neighbourhood behind them.
0:14:08 > 0:14:11There were plenty of warning signs not really to rent this house.
0:14:11 > 0:14:13The neighbours thinking Ailsa was a prostitute.
0:14:13 > 0:14:15SHE LAUGHS
0:14:15 > 0:14:17When Ailsa's grandma sadly passed away,
0:14:17 > 0:14:22she had one wish for how the £45,000 inheritance should be spent.
0:14:22 > 0:14:24She'd always said,
0:14:24 > 0:14:27"The money that I leave you is to buy a house with."
0:14:27 > 0:14:30With the bank of mum and dad and grandma behind her,
0:14:30 > 0:14:33Ailsa aims to find, buy and move
0:14:33 > 0:14:35into her new home within the five months
0:14:35 > 0:14:36we've been filming with her.
0:14:36 > 0:14:40And she's interested in this three-bed house with garden
0:14:40 > 0:14:42in the more picturesque area of Pudsey.
0:14:42 > 0:14:46It's on the market for a sweet 100 grand.
0:14:46 > 0:14:49Her parents have been with her every step of the way,
0:14:49 > 0:14:52but, having the help and advice can be problematic.
0:14:52 > 0:14:54There's been a few arguments.
0:14:54 > 0:14:56We've made up and everything, but there always seems to be
0:14:56 > 0:14:59something else that I feel like she's left me out of it.
0:14:59 > 0:15:01But Ailsa's going to need them,
0:15:01 > 0:15:03as she wants to put in an offer on the place.
0:15:03 > 0:15:05So, how do you do that?
0:15:05 > 0:15:06When I go into the estate agent...
0:15:08 > 0:15:10You say you want to put an offer in.
0:15:10 > 0:15:12Yes, I want to put an offer in.
0:15:12 > 0:15:15But is there going to be, apart from prices and things like that,
0:15:15 > 0:15:17are they going ask me something else?
0:15:17 > 0:15:19- They'll ask you what your offer is. - Right, OK.
0:15:19 > 0:15:21- Let's get over that hurdle first.- Yeah.
0:15:21 > 0:15:23It would be really nice if we could get "yes" or "no" today
0:15:23 > 0:15:26- and get it all done and dusted. - Yeah.
0:15:26 > 0:15:28- What are we going to start with? - 94,750.
0:15:28 > 0:15:32Right. So, we start with that and we'll see what happens.
0:15:32 > 0:15:36Ready to make that big step on the upward ladder of life?
0:15:36 > 0:15:37Oh. Big step.
0:15:39 > 0:15:41Typically, it's better to put in a lower offer,
0:15:41 > 0:15:45although not too low, as you risk not being taken seriously.
0:15:45 > 0:15:48In England and Wales, the middleman or woman is normally
0:15:48 > 0:15:51the estate agent and this is who you have to put your offer in to.
0:15:51 > 0:15:54We talked about 94,750.
0:15:54 > 0:15:57- AGENT:- OK. Well, that's great. So, 94,950.
0:15:57 > 0:16:01- Is that what you're thinking to offer?- 94,750.- 750.
0:16:01 > 0:16:02That's fine.
0:16:02 > 0:16:05The minute we get any information, we will give you a call
0:16:05 > 0:16:07and just let you know what's happening with the offer.
0:16:07 > 0:16:09Nice to see you.
0:16:09 > 0:16:11Now, all Ailsa has to do is wait.
0:16:11 > 0:16:15I do hope we get an answer before we have to go home.
0:16:18 > 0:16:21Richard, what are your top tips for those who want to put
0:16:21 > 0:16:24an offer on a property, but are going it alone?
0:16:24 > 0:16:27Well, first of all, don't get emotional, which is
0:16:27 > 0:16:29very common for first-time buyers.
0:16:29 > 0:16:32Stay calm under pressure.
0:16:32 > 0:16:35Number two, check out similar properties in the area,
0:16:35 > 0:16:39using the Land Registry website, or other similar property sites
0:16:39 > 0:16:42to see what houses have sold for in the local area.
0:16:42 > 0:16:45Number three, consider putting in an offer of
0:16:45 > 0:16:4610% less than the asking price.
0:16:46 > 0:16:50It's likely to be rejected, but it is the start of negotiations.
0:16:50 > 0:16:54And, finally, remember, it's much easier to increase your offer,
0:16:54 > 0:16:58rather than reduce it, unless there's a serious problem,
0:16:58 > 0:16:59such as the survey results.
0:16:59 > 0:17:02Cracking tips, Richard. Thank you so much.
0:17:02 > 0:17:05Now, remembering all of that and staying really calm
0:17:05 > 0:17:08under pressure is a test for anyone,
0:17:08 > 0:17:10especially if you're going it alone.
0:17:10 > 0:17:13So, why wouldn't you buy with friends?
0:17:13 > 0:17:14But our survey said that only
0:17:14 > 0:17:16a third of you would even
0:17:16 > 0:17:18consider buying with your bezzie.
0:17:18 > 0:17:20So, I asked Tina Daheley to find out
0:17:20 > 0:17:23what are the pros and cons.
0:17:23 > 0:17:27LAUGHTER AND CHATTER
0:17:27 > 0:17:28According to our survey,
0:17:28 > 0:17:31nearly half of you that have rented have rented with a friend.
0:17:31 > 0:17:32An obvious choice, of course.
0:17:32 > 0:17:35LAUGHTER
0:17:36 > 0:17:38It also revealed that one of your biggest gripes
0:17:38 > 0:17:43with your flatmate, good, old-fashioned household chores.
0:17:43 > 0:17:45'So, there might be some truth in that old expression,
0:17:45 > 0:17:48'"Never mix business with pleasure." And it's probably for that
0:17:48 > 0:17:52'reason that nearly half of you would not consider buying with a friend.'
0:17:52 > 0:17:56But, with first-time buyers needing such huge deposits,
0:17:56 > 0:18:00buying with a mate could be the perfect way of getting that
0:18:00 > 0:18:02first step onto the property ladder.
0:18:02 > 0:18:05'To find out how it can work in practice,
0:18:05 > 0:18:07'I've come to Cricklewood, North West London,
0:18:07 > 0:18:11'to meet three lads who are putting this idea to the test.
0:18:11 > 0:18:14'Ilan, Josh and Nick bought a three-bedroom
0:18:14 > 0:18:17'maisonette for 375 grand.
0:18:17 > 0:18:20'They're from the same hometown and have been mates for years.'
0:18:20 > 0:18:24It's quite an usual to be so... You're, what, 26?
0:18:24 > 0:18:28To be young, living in London and decide to buy somewhere together.
0:18:28 > 0:18:29Most people just rent.
0:18:29 > 0:18:32Yeah, but I think we're all keen to get on the property ladder quite quickly.
0:18:32 > 0:18:34Was it an easy process?
0:18:34 > 0:18:36Pretty difficult, to be honest. We looked.
0:18:36 > 0:18:38We had to expand the area we were looking at.
0:18:38 > 0:18:40We looked at this place, it was too expensive.
0:18:40 > 0:18:43We just got very lucky that, a year down the line,
0:18:43 > 0:18:46it came back onto the market, they dropped the price a bit.
0:18:46 > 0:18:49'Living with their parents, they all saved a tasty 20 grand each,
0:18:49 > 0:18:52'so, on top of hefty fees and stamp duty,
0:18:52 > 0:18:54'the boys handed over a 15% deposit.'
0:18:54 > 0:18:57You've got to be pretty disciplined if you're young.
0:18:57 > 0:19:00- Don't you want to go out, spend your money? - He's the disciplined one.
0:19:00 > 0:19:02I think us two are not the best example of being disciplined.
0:19:02 > 0:19:05He's much better at managing exactly what goes in and out.
0:19:08 > 0:19:12Now, what happens if one of you decides you want to move out?
0:19:12 > 0:19:15It'll be a little bit tricky before two years.
0:19:15 > 0:19:17The contract that we've got between the three of us
0:19:17 > 0:19:19basically makes it quite hard to do that.
0:19:19 > 0:19:22You drew up a contract between yourselves before you moved in.
0:19:22 > 0:19:25- Yes.- But is it legally binding?
0:19:25 > 0:19:27- Yeah.- Yes.- Yeah.
0:19:27 > 0:19:29- Can anyone do that?- Yes, effectively.
0:19:29 > 0:19:31Well, you take it through a solicitor,
0:19:31 > 0:19:34but effectively, as long as it's got your signatures on it
0:19:34 > 0:19:36and it's been approved, it's all fine.
0:19:36 > 0:19:39So, you've come up with an agreement of what you think is fair
0:19:39 > 0:19:40if your circumstances change.
0:19:40 > 0:19:43There's one thing at the bottom of the contract that says,
0:19:43 > 0:19:45"For anything not in the contract..."
0:19:45 > 0:19:47Majority rules, basically.
0:19:47 > 0:19:51- Everything's covered.- Yeah. If we want to evict him, we can.
0:19:51 > 0:19:54LAUGHTER
0:19:54 > 0:19:55It's a great clause.
0:19:55 > 0:19:57'The boys have clearly got it covered.
0:19:57 > 0:20:00'There's even a clause about girlfriends,
0:20:00 > 0:20:03'so the three of them are always in control.'
0:20:03 > 0:20:05There's the rule in there about no key,
0:20:05 > 0:20:08so even if, say, Nick had a girlfriend but he's not here
0:20:08 > 0:20:11but the girlfriend's letting herself in, that's stepping over a mark.
0:20:11 > 0:20:14What advice would you give to other people
0:20:14 > 0:20:16thinking about buying with mates?
0:20:16 > 0:20:20I think the most important thing is trust, and that you trust the people you're buying with,
0:20:20 > 0:20:22and that you know them very well,
0:20:22 > 0:20:25because you're going to be living with them and you're committed to that.
0:20:25 > 0:20:28And also, just discuss everything and be open with everything.
0:20:28 > 0:20:31If you got a reservation about something, you've got to say
0:20:31 > 0:20:34otherwise it will go too far down the line and you can't change it.
0:20:34 > 0:20:36And not to rush as well. Don't rush.
0:20:36 > 0:20:39If it's a matter of waiting a few more months to save money
0:20:39 > 0:20:42to get the property you want... It's exactly what we do.
0:20:42 > 0:20:44It took a year and a half, but it was worth it.
0:20:44 > 0:20:46So, who's the best flatmate?
0:20:46 > 0:20:50- I'm probably the strongest in that department.- Elected by yourself!
0:20:50 > 0:20:55- "Voted for by me!" - He's the strongest, I am the best housemate.- OK.
0:20:55 > 0:20:59- You're the best looking, he is going to say.- Yeah, we'll go with that.
0:20:59 > 0:21:02THEY ALL LAUGH
0:21:02 > 0:21:05It's pretty clear joint ownership is working for these boys.
0:21:05 > 0:21:09They seem really clued up and have done things to protect themselves,
0:21:09 > 0:21:14like drawing up a deed of trust and having a joint bank account.
0:21:14 > 0:21:16But the best advice, unfortunately,
0:21:16 > 0:21:19is considering the worst-case scenario.
0:21:19 > 0:21:23Drawing up a contract just in case of a change of circumstance
0:21:23 > 0:21:27is really imperative, however a good friend they are,
0:21:27 > 0:21:29but with more and more of us considering this route,
0:21:29 > 0:21:35the banks are starting to cotton on, so you could get a really good deal.
0:21:38 > 0:21:41Now back to the bustling city of Leeds, and Sarah and Craig.
0:21:41 > 0:21:43They've been together five years
0:21:43 > 0:21:47and have set themselves the task of finding a way
0:21:47 > 0:21:50of getting onto the property ladder with just a small deposit.
0:21:50 > 0:21:5350p? You're joking. Put it in for deposit. Get in.
0:21:53 > 0:21:56- Is it?- No, do you know what it is? It's a party popper.
0:21:56 > 0:22:01And a bad winter left self-employed roofer Craig without work.
0:22:01 > 0:22:04January, we didn't have no work. That's how much work we had!
0:22:04 > 0:22:07And Sarah had to pay her college fees.
0:22:07 > 0:22:11Plus, a visit to the bank to talk mortgages left her, well, puzzled.
0:22:11 > 0:22:14I think it was just too much to take on.
0:22:14 > 0:22:17And Craig wasn't too impressed with what was on offer.
0:22:17 > 0:22:22- At 5.9% interest... - How much?!- 5.9% interest.
0:22:24 > 0:22:27Richard wants to see what's available for them
0:22:27 > 0:22:30if they go down the traditional house-buying route
0:22:30 > 0:22:31of needing a 10% deposit,
0:22:31 > 0:22:35so he's brought them to see a house in an area they're keen to live in.
0:22:35 > 0:22:39- So what are your first impressions coming through the door?- Tiny.- Tiny.
0:22:39 > 0:22:43It might need a huge dollop of modernisation,
0:22:43 > 0:22:47but this three-bed end-of-terrace is on the market for just 85 grand.
0:22:47 > 0:22:50So, you'd probably be looking at a 10% deposit on this
0:22:50 > 0:22:54particular property, which would be £8,500
0:22:54 > 0:22:56to get into the property.
0:22:56 > 0:22:58As a mortgage repayment,
0:22:58 > 0:23:01that would work out at roughly £450 per month.
0:23:01 > 0:23:04Yeah, it's all right. We pay £400 in rent now...
0:23:04 > 0:23:08So, for an extra £50, you could own the property.
0:23:08 > 0:23:12Getting a deposit together of 8,500 grand is totally unrealistic
0:23:12 > 0:23:16for Sarah and Craig, like thousands of you across the UK.
0:23:16 > 0:23:17But don't despair.
0:23:17 > 0:23:21There is another option where you could slash the deposit in half.
0:23:21 > 0:23:23Stay with us to find out.
0:23:29 > 0:23:33With a sizeable deposit of around 30K,
0:23:33 > 0:23:36Shree wants to leave the blue rinses of Harrogate behind him
0:23:36 > 0:23:40and buy a hot new pad in Leeds but first, he needs to find one.
0:23:40 > 0:23:43He's also had a reality check on his overall budget,
0:23:43 > 0:23:48and downsized it from 125 to 95 grand.
0:23:48 > 0:23:52So, will this get him the swish apartment he's interested in?
0:23:52 > 0:23:57So, I've just seen three properties. The first one, I really liked it.
0:23:57 > 0:24:00It was on the eighth floor, so it had great views.
0:24:00 > 0:24:03The second one was on the third floor,
0:24:03 > 0:24:07and it was in this little corridor surrounded by other developments,
0:24:07 > 0:24:11so privacy would be a bit of an issue, just other people looking in.
0:24:11 > 0:24:14And a third one that I just saw was amazing.
0:24:14 > 0:24:18It was bigger than the rest, at the same price point as the rest,
0:24:18 > 0:24:22and it's in a nicer development, a newer development.
0:24:22 > 0:24:24It just looks awesome,
0:24:24 > 0:24:26and it's the one that I'm probably going to go for.
0:24:26 > 0:24:30It's on the market for 95,000, so what are you going to offer, Shree?
0:24:30 > 0:24:34So, I would be looking to open
0:24:34 > 0:24:38with an offer of 75 -
0:24:38 > 0:24:41that's 20 grand lower - just to see what they say.
0:24:41 > 0:24:46It gives me an indication if they're willing to negotiate, or if that's just far too low.
0:24:50 > 0:24:53Before he puts in another crazy low offer,
0:24:53 > 0:24:56Richard swings by to try and understand his reasoning.
0:24:56 > 0:25:00OK, Shree. Good to see you again. So, have we found anything?
0:25:00 > 0:25:02Have we proactively gone out there?
0:25:02 > 0:25:05I saw some places in development around Clarence Dock.
0:25:05 > 0:25:08The first two were pretty much standard one-beds
0:25:08 > 0:25:12that I'd expect to see in Leeds, but the last one was really nice,
0:25:12 > 0:25:16as soon as I walked in, I saw myself, and I could picture, like,
0:25:16 > 0:25:18"OK, the sofa's going there, TV's going there."
0:25:18 > 0:25:21I could just picture how it would be laid out, etc,
0:25:21 > 0:25:23and I could see myself living there,
0:25:23 > 0:25:26so I'm very interested in putting an offer on that place.
0:25:26 > 0:25:29So, what sort of value are we looking at currently, or asking price?
0:25:29 > 0:25:32The one I want is 95, or just under 95,
0:25:32 > 0:25:34so I'm going to go in
0:25:34 > 0:25:38with an offer around 80,500.
0:25:38 > 0:25:40- Right, OK.- And see what they say.
0:25:40 > 0:25:43- So, the asking price is 95,000? - Yeah.
0:25:43 > 0:25:48So we're essentially going to ask them to shave off the thick end of 15,000.
0:25:48 > 0:25:53I can kind of see the response that I'd want to give you at this particular point.
0:25:53 > 0:25:57Now, it might be better... This is just something to think about in terms of how you
0:25:57 > 0:26:01want to present yourself to the vendor, and in particular the estate agent,
0:26:01 > 0:26:05as a serious buyer, that you consider coming in maybe higher.
0:26:05 > 0:26:10My fear would be that if you come in too low, you're going
0:26:10 > 0:26:14to get a reaction, you'll get a yes or a no, and anything could happen.
0:26:14 > 0:26:16You could get a yes, but I think
0:26:16 > 0:26:22it's highly unlikely in this market, to be honest, it's not that down.
0:26:22 > 0:26:25But they could also take the opinion
0:26:25 > 0:26:28that you're not a very serious proposition.
0:26:30 > 0:26:34So, will entrepreneur Shree take Richard's advice
0:26:34 > 0:26:38and put in an offer nearer to the 95 grand mark?
0:26:40 > 0:26:42Time to find out.
0:26:44 > 0:26:48Yeah, in terms of the properties we saw last week...
0:26:48 > 0:26:52I've been doing some thinking about figures, etc.
0:26:52 > 0:26:56I am looking to put in an offer, and to start...
0:26:56 > 0:27:00I'd like to put an offer of 85,000 in.
0:27:00 > 0:27:04What...? What do you think?
0:27:04 > 0:27:07In my experience, I think it will be a rejection.
0:27:07 > 0:27:13Would it be a rejection as in no, definitely, that's far too low,
0:27:13 > 0:27:16or can we meet in the middle somewhere?
0:27:16 > 0:27:18I think it'll be definitely far too low.
0:27:18 > 0:27:21- I would like that offer presented to the seller, if that's OK.- Yeah.
0:27:21 > 0:27:25Just to basically gauge their response.
0:27:25 > 0:27:28Like you said, it's probably going to be rejected,
0:27:28 > 0:27:32but just to see if it is a downright now, or if there is...
0:27:32 > 0:27:36- Basically what they come back with, that's what I'm interested in. - Would you like me to ring her now?
0:27:36 > 0:27:40- If that works for you, that would be perfect.- Well, I'll see if I can...
0:27:41 > 0:27:45That's still £10,000 less than the asking price.
0:27:47 > 0:27:50Hi, Magdalena. It's Ethna from Parklane.
0:27:51 > 0:27:53Hi.
0:27:53 > 0:27:57I've got the viewer with me, that viewed last week,
0:27:57 > 0:28:00the viewings we did on Thursday.
0:28:00 > 0:28:02He's made an offer of 85,000.
0:28:08 > 0:28:10OK.
0:28:10 > 0:28:13And what is it that you would...? What is acceptable?
0:28:15 > 0:28:18OK. All right. Leave that with me.
0:28:19 > 0:28:21She really wants the 95.
0:28:22 > 0:28:26I'm going to look at my finances, see what I can do about it,
0:28:26 > 0:28:29and then I'll pop in again, give you a call.
0:28:29 > 0:28:32'Basically, I just need to decide whether I would pay 95.'
0:28:32 > 0:28:36It's 10,000 more than I initially offered.
0:28:36 > 0:28:39I knew I would have to come up a bit, but to be honest,
0:28:39 > 0:28:42I'm going to have to sleep on it. I can't make that decision on the spot.
0:28:42 > 0:28:45It's another big fat no for Shree.
0:28:45 > 0:28:49This property-buying isn't so easy after all. What's a boy to do?
0:28:52 > 0:28:56Well, I've been told one good way to guarantee bagging a bargain
0:28:56 > 0:29:01is buying at auction, but as I found out, you need nerves of steel.
0:29:01 > 0:29:05Last year, over 26,000 properties were sold at auction,
0:29:05 > 0:29:10with an estimated 10% of those being bought by first-time buyers.
0:29:10 > 0:29:13We've all seen those auction TV shows
0:29:13 > 0:29:15where places are picked up for peanuts.
0:29:15 > 0:29:18How hard can it really be?
0:29:18 > 0:29:22To find out, I'm meeting 21-year-old barman Will.
0:29:22 > 0:29:26He's got his eye on this three-bed terrace up for auction
0:29:26 > 0:29:28in his home town of Newport, Wales.
0:29:29 > 0:29:32- A bit scary?- Yeah, pretty nervous.
0:29:32 > 0:29:33Do you want to have a look inside?
0:29:33 > 0:29:37- Yeah, I'd love to.- Cool.- How many times have you viewed it?- Just once.
0:29:37 > 0:29:40- OK. So this is the second time. - The second time I've been in, yeah.
0:29:40 > 0:29:43- Double-checking. Auction's this afternoon. That's fine! - That's right. Yeah.
0:29:47 > 0:29:49I know that smell.
0:29:50 > 0:29:53That is cat. That is man cat.
0:29:53 > 0:29:58- Will...- Yeah.- There was definitely a boy cat living here.- A boy cat?
0:29:58 > 0:30:02- I know that smell very well. - I just assumed it was a dead one.
0:30:06 > 0:30:11- That's quite interesting because you can see through to the other side. - Yeah, it's not great.
0:30:11 > 0:30:13How much is this house priced at?
0:30:13 > 0:30:15The guide price is 30,000.
0:30:15 > 0:30:18How much do you think it is going to go for?
0:30:18 > 0:30:22Well, my budget to buy at auction is 45,000.
0:30:22 > 0:30:25How much is your budget for doing it up?
0:30:25 > 0:30:28I would optimistically say less than 20.
0:30:30 > 0:30:33- So this is the kitchen.- Oh, my gosh!
0:30:33 > 0:30:36Does that not worry you, that enormous, crusty hole in your house?
0:30:36 > 0:30:41- Obviously, yeah, I'm not going to keep it if I do buy the house. - That would probably be quite bad.
0:30:41 > 0:30:44It needs repairing and it is going to be quite a major cost, I think.
0:30:44 > 0:30:47You're quite tall and this is quite small house.
0:30:47 > 0:30:49I am a bit concerned about the doorways, yeah.
0:30:49 > 0:30:51Despite first appearances,
0:30:51 > 0:30:55properties like this can be a great opportunity for first-time buyers.
0:30:55 > 0:30:59- And the ceiling...- Oh, my goodness. - Again, looks a bit...
0:30:59 > 0:31:03Someone's actually stuck it together with masking tape.
0:31:03 > 0:31:04HE LAUGHS
0:31:04 > 0:31:09Are you worried about neighbouring houses being quite derelict and rundown?
0:31:09 > 0:31:12Yeah, it does unnerve me that there are, like, prison bars on that house over there a bit.
0:31:12 > 0:31:15Yeah, it's not that friendly.
0:31:16 > 0:31:22The auction is tonight so I've got a head start to see what else is up for grabs.
0:31:22 > 0:31:25So this is the catalogue for today's auction.
0:31:26 > 0:31:29I think it's fair to say that a lot of these need
0:31:29 > 0:31:33a lot of love and attention. A little bit too much DIY for me.
0:31:33 > 0:31:36This one doesn't even have a roof, or walls,
0:31:36 > 0:31:38but it does come with parking!
0:31:38 > 0:31:42Actually, there's only one property that has a suggested price of 100 grand,
0:31:42 > 0:31:46so it's perfect for first-time buyers.
0:31:46 > 0:31:51Actually, there's even some quite impressive new builds for about 70 grand.
0:31:51 > 0:31:55So, all in all, there are some really fantastic opportunities here.
0:31:55 > 0:32:00But if buying at auction was so easy and cheap, surely we'd all be at it.
0:32:00 > 0:32:06To get the inside track on the dos and don'ts, I'm going to talk to the auctioneer, Paul Fosh.
0:32:06 > 0:32:08£73,000...
0:32:08 > 0:32:12Do you think this is a good way for first-time buyers to purchase a property?
0:32:12 > 0:32:15I think it can be a great way for first-time buyers.
0:32:15 > 0:32:18They do have to have a good deposit to hand.
0:32:18 > 0:32:22They have to be in a position to know they have the finance sorted.
0:32:22 > 0:32:26That can involve them spending money on surveys before an auction
0:32:26 > 0:32:28and they may be wasting money if they are unsuccessful.
0:32:28 > 0:32:32What are your big do-not-dos if you are going to buy at auction?
0:32:32 > 0:32:36Do not buy property you haven't seen.
0:32:36 > 0:32:40Do not buy a property that you have not looked at the legal pack on.
0:32:40 > 0:32:42Do not buy property that you don't know the area,
0:32:42 > 0:32:45or you haven't done your research on.
0:32:45 > 0:32:47Once that hammer's fallen, contracts are legally exchanged.
0:32:47 > 0:32:50The seller can't back out, the buyer can't back out.
0:32:50 > 0:32:52So you really, really have to do your homework?
0:32:52 > 0:32:57Basically, you are buying a house. You might be buying a house in two minutes at a property auction
0:32:57 > 0:33:00but it still is a legal transaction.
0:33:01 > 0:33:05The auction room's filling up as Will and I get settled in.
0:33:05 > 0:33:08- How are you feeling?- Scared.
0:33:08 > 0:33:13And, to make it even more stressful, Will's lot is up first. Yikes!
0:33:13 > 0:33:15Lot number one, a lot of interest in this.
0:33:15 > 0:33:19Where are you going to start me. Shall we say £30,000? Thank you, 30.
0:33:19 > 0:33:2431, thank you. 32? 32, 33? 33.
0:33:24 > 0:33:2634? 34. 35? 35.
0:33:26 > 0:33:3036? 36. 37. 38? 38.
0:33:30 > 0:33:3339. 39 and 40? 40,000.
0:33:33 > 0:33:3641? 41? 42, 43.
0:33:36 > 0:33:40At £42,000 on my right, then.
0:33:40 > 0:33:43It's going... 43. 44?
0:33:43 > 0:33:4643,500, if you like? 43,500.
0:33:46 > 0:33:4844 now, sir? 44. And a half?
0:33:48 > 0:33:5144,500. 45?
0:33:51 > 0:33:5445. And a half? 46? 46?
0:33:54 > 0:33:5646. And a half? No.
0:33:56 > 0:34:00At £46,000 towards the back, on the right-hand side,
0:34:00 > 0:34:05for the first time, at 46,500...
0:34:05 > 0:34:0846,500, well done. 47? 47.
0:34:08 > 0:34:1147,500? One more, are you sure?
0:34:11 > 0:34:15At 47 towards the back, for the first time.
0:34:15 > 0:34:19Second time. Third and last time at £47,000...
0:34:19 > 0:34:22A new bidder. 47,500.
0:34:22 > 0:34:2448? 48.
0:34:24 > 0:34:2649, then behind. 48, 49?
0:34:26 > 0:34:29We're now back to you at 50, sir.
0:34:29 > 0:34:33Behind you at 51? Otherwise it's going to be sold at £50,000, then,
0:34:33 > 0:34:35for the first time.
0:34:35 > 0:34:36Second time.
0:34:36 > 0:34:38Third and last time at £50,000.
0:34:38 > 0:34:42Yours, sir, thank you, your number, please.
0:34:42 > 0:34:4376. Thank you.
0:34:45 > 0:34:47So are you a bit disappointed,
0:34:47 > 0:34:51- you didn't get the smelly, falling down, crusty house?- Yeah, slightly.
0:34:51 > 0:34:52Would you do this again?
0:34:52 > 0:34:55Erm, I don't think so. There is too...
0:34:56 > 0:34:59I mean, maybe like I feel like I've enjoyed it at the minute
0:34:59 > 0:35:02but at the moment I'm still... my heart's racing...
0:35:02 > 0:35:04- And your adrenaline is pumping? - Exactly, yeah.
0:35:04 > 0:35:0652. 53 then back to you.
0:35:06 > 0:35:10I was quite surprised how stressful the auction actually was.
0:35:10 > 0:35:12I think Will was true.
0:35:12 > 0:35:16A huge amount of money changes hands in a matter of minutes.
0:35:16 > 0:35:19It's really easy to get sucked up into the excitement.
0:35:19 > 0:35:22Even Will went to absolutely his max price.
0:35:22 > 0:35:26I think if you have a cool head, and you've done your research,
0:35:26 > 0:35:30and you really stick to your price, then, I think, auctions are fantastic.
0:35:30 > 0:35:32You can get a great bargain.
0:35:32 > 0:35:34There are massive risks.
0:35:34 > 0:35:37You need to do your homework really thoroughly.
0:35:37 > 0:35:40Otherwise, I think, give them a miss.
0:35:46 > 0:35:51Back in Yorkshire, Sarah and Craig know that getting a 10% deposit together
0:35:51 > 0:35:54to buy a property the traditional way is well out of their reach
0:35:54 > 0:35:56but there is another option.
0:35:56 > 0:35:59Richard has taken them to a new build house
0:35:59 > 0:36:02which might be a more affordable solution for them.
0:36:02 > 0:36:05- What are your initial thoughts? - Nice.- It's nice.
0:36:05 > 0:36:10Surprising for a new build, to say I'm, like, not keen on them.
0:36:10 > 0:36:14We have it on good authority that you could get this property for £121,000.
0:36:16 > 0:36:18Now, that is quite a chunk of money.
0:36:20 > 0:36:25New build houses like this can be bought with just a 5% deposit through a Government scheme.
0:36:25 > 0:36:29It's still, just for us 5% of that, you know,
0:36:29 > 0:36:33that's great 5%. It's still getting six grand.
0:36:33 > 0:36:386,000 is a hell of a lot but Richard clearly thinks it's achievable,
0:36:38 > 0:36:41especially with some of the Government schemes available
0:36:41 > 0:36:43to first-time buyers like Sarah and Craig,
0:36:43 > 0:36:47one of which is called Help To Buy Equity Loan.
0:36:47 > 0:36:50Right, guys, so the Help To Buy scheme works like this.
0:36:50 > 0:36:53Let's imagine that this 100 quid we've got here represents
0:36:53 > 0:36:59£100,000, which is about what we would be looking for for a mortgage.
0:36:59 > 0:37:03First of all, the Government would give us 20%.
0:37:03 > 0:37:05Now, interesting, this 20% would be
0:37:05 > 0:37:10interest-free for the first five years, which is incredibly cheap.
0:37:10 > 0:37:14The second thing we are going need to find, of course, is our deposit.
0:37:14 > 0:37:16Unlike, the more traditional mortgage route,
0:37:16 > 0:37:19we only need to find, in this case, 5%.
0:37:19 > 0:37:23That cuts in half what we originally would need.
0:37:23 > 0:37:25Ten grand now becomes five grand.
0:37:25 > 0:37:28The remaining 75,000 is what we'd need to find
0:37:28 > 0:37:31through the traditional mortgage route.
0:37:31 > 0:37:33You could look at a variety of different lenders,
0:37:33 > 0:37:38through banks and building societies and borrow that on a traditional mortgage.
0:37:38 > 0:37:41When we combine all of these three things together,
0:37:41 > 0:37:45because of this being interest-free for the first five years,
0:37:45 > 0:37:49the overall cost of the mortgage is considerably cheaper
0:37:49 > 0:37:53and our monthly repayments are considerably cheaper,
0:37:53 > 0:37:58because we're only paying interest on this proportion of the loan.
0:37:58 > 0:38:01And, of course, because we only need 5% that means the deposit is
0:38:01 > 0:38:05twice as easy for us to get than it is down the more traditional route.
0:38:05 > 0:38:09In your case, we were looking for £10,000,
0:38:09 > 0:38:12now we only need £5,000.
0:38:14 > 0:38:19Another Government scheme aimed at first-time buyers like Sarah and Craig
0:38:19 > 0:38:20is called Shared Ownership
0:38:20 > 0:38:24and I asked Tina to investigate what it's all about.
0:38:26 > 0:38:31Back in the summer of 2012, Britain was buzzing with worldwide attention.
0:38:35 > 0:38:39A whole host of athletes became household names.
0:38:39 > 0:38:45But, with the biggest show on earth now over, some of the 3,000 properties in the Olympic village
0:38:45 > 0:38:48are being turned into affordable housing.
0:38:48 > 0:38:51Athlete JJ Jegede just missed out the Games,
0:38:51 > 0:38:54but he could be about to live here anyway.
0:38:54 > 0:38:56He's a local lad from East London
0:38:56 > 0:38:58but cannot afford to buy on the open market.
0:38:58 > 0:39:00- # I want to make you wanna... - Jump, jump...- #
0:39:00 > 0:39:03JJ is one of the world's best long jumpers and was
0:39:03 > 0:39:07introduced to the shared ownership housing idea by his sister.
0:39:07 > 0:39:10She said that she'd got reduced mortgage
0:39:10 > 0:39:13and she paid a rent on the other part she didn't own.
0:39:13 > 0:39:18- So you buy a bit and then you rent a bit?- Yeah. It was like half/half.
0:39:18 > 0:39:22At least this is a way of getting onto the ladder.
0:39:22 > 0:39:24To explain how shared ownership schemes work,
0:39:24 > 0:39:27we are going to use this traditional podium where the bronze,
0:39:27 > 0:39:31silver and gold spots represent a third.
0:39:31 > 0:39:33So, JJ just to make things clear,
0:39:33 > 0:39:37let's imagine all of this is your house. Which bit do you own?
0:39:37 > 0:39:42I'd own a deposit and I'd get a mortgage on a third of the property
0:39:42 > 0:39:45and I'm paying rent on the other two thirds.
0:39:45 > 0:39:47So the rent to the housing association
0:39:47 > 0:39:50- on two thirds of the house. You own this bit?- Yes, that's right.
0:39:50 > 0:39:54So JJ what happens if, you know, in the future you earn a bit more money?
0:39:54 > 0:39:57Hopefully, I can buy some more.
0:39:57 > 0:40:02So now I'd have a mortgage of two thirds
0:40:02 > 0:40:05and I'd pay rent on the other third to the housing association.
0:40:05 > 0:40:07- For that bit.- Yeah.- And the dream?
0:40:07 > 0:40:10The dream, hopefully, is to own it all.
0:40:10 > 0:40:12So, I don't pay any rent to the housing association.
0:40:12 > 0:40:16What happens, if some reason, you want to sell it before then?
0:40:16 > 0:40:18If I want to sell it, hopefully it's gone up in price
0:40:18 > 0:40:23and once it's sold I'd get two thirds of the profit
0:40:23 > 0:40:26and the housing association would get the other third of the profit.
0:40:26 > 0:40:29This is the flat he's hoping to bag.
0:40:29 > 0:40:33- Here we are.- Wow! This is lovely.
0:40:33 > 0:40:37- It's so big, isn't it?- It's really nice.- It's such a lovely space.
0:40:37 > 0:40:39It's just all brand, spanking new.
0:40:39 > 0:40:42It's a great way to come into a new house.
0:40:42 > 0:40:44You can, literally, just move straight in.
0:40:44 > 0:40:48Yes, bring your bits and set up your table, set up your sofa
0:40:48 > 0:40:52- and you're away.- Modern design, isn't it?- Yeah.- It's all very sleek.
0:40:52 > 0:40:56- It's very compact. - It's beautiful- It's very stylish.
0:40:56 > 0:40:59It's even got a balcony, look at the balcony.
0:40:59 > 0:41:01You can see the Olympic Stadium right over there.
0:41:01 > 0:41:05I'll be competing in there quite a bit so, for me,
0:41:05 > 0:41:08I'll be able to walk across and have a little jump.
0:41:08 > 0:41:12- A perfect location for you.- The best location.- Are there any downsides?
0:41:12 > 0:41:15I think that when I have a family,
0:41:15 > 0:41:17- maybe I'll have to move to a bigger place.- Mm-hm.
0:41:17 > 0:41:21I know that if I wanted to move another place
0:41:21 > 0:41:23I couldn't sublet this place I'd have to sell it.
0:41:23 > 0:41:28- I could only sublet it if I had owed 100% of the property.- OK.
0:41:28 > 0:41:31So on the shared ownership unless you own it outright,
0:41:31 > 0:41:33which you won't at the beginning, you can't sublet?
0:41:33 > 0:41:36- Yeah, I won't be able to let it to somebody else until I own the full property.- Right.
0:41:38 > 0:41:41If you earn less than 60K a year, or a bit more in London,
0:41:41 > 0:41:46and can't buy a home outright in the area you live, you could be eligible.
0:41:46 > 0:41:50Over 170,000 shared ownership properties have been sold to date
0:41:50 > 0:41:56in the UK, so it could be a great way to get that first step onto the property ladder.
0:41:56 > 0:42:01Shared ownership is a government backed scheme, so it's a safe bet for your money
0:42:01 > 0:42:05and has helped loads of aspiring first-time buyers.
0:42:05 > 0:42:09There are a few drawbacks, though, like restrictions on who you can sell to
0:42:09 > 0:42:12and, like any property, location is key.
0:42:12 > 0:42:14If you don't have the bank of mum and dad behind you,
0:42:14 > 0:42:17or a huge deposit sitting in your bank account,
0:42:17 > 0:42:19this could be the perfect venture.
0:42:19 > 0:42:21Richard, when it comes to buying a house,
0:42:21 > 0:42:24there are quite few intimidating, scary terms such as
0:42:24 > 0:42:28shared ownership, equity loan and I know there's a whole load more.
0:42:28 > 0:42:33There are. In a nutshell, there are four different ways you can get a loan from the Government.
0:42:33 > 0:42:38All are aimed at first-time buyers and they only require a 5% deposit,
0:42:38 > 0:42:41which is so much easier to achieve.
0:42:41 > 0:42:46Our survey showed that it's getting that deposit together that is
0:42:46 > 0:42:50- the biggest obstacle for getting on the property ladder.- Exactly.
0:42:50 > 0:42:54And so far we've looked at equity loan and shared ownership
0:42:54 > 0:42:56but we also have new buy
0:42:56 > 0:42:59and that does exactly what it says on the tin.
0:42:59 > 0:43:03The property needs to be new and it needs to be through a developer who is registered with the scheme.
0:43:03 > 0:43:06Once again, you only need a 5% deposit.
0:43:08 > 0:43:12Now all of the schemes we've looked at so far are aimed at new build,
0:43:12 > 0:43:15but a new scheme, available in January 2014,
0:43:15 > 0:43:20called Help To Buy Mortgage Guarantee will be aimed at older properties.
0:43:20 > 0:43:24But, once again, you only require a 5% deposit.
0:43:24 > 0:43:28That's my favourite option because, actually, the great thing about those old buildings
0:43:28 > 0:43:30is that they have potential.
0:43:30 > 0:43:33So you put in a new kitchen, you do some work to the house
0:43:33 > 0:43:37- and, actually, they're a really good investment.- They are.
0:43:37 > 0:43:40I should also point out there are some good private schemes out there
0:43:40 > 0:43:43so it's well worth getting online and doing some research for yourself.
0:43:43 > 0:43:46But, you obviously have to check the Government website
0:43:46 > 0:43:48- for terms and conditions. - Always a good idea.
0:43:48 > 0:43:53So now we are back to Leeds where we are following some wannabe home owners
0:43:53 > 0:43:58who are attempting to get their foot on the seemingly elusive property ladder.
0:44:05 > 0:44:09Ailsa inherited £45,000 from her grandma on the condition
0:44:09 > 0:44:12she uses it to buy her first home.
0:44:12 > 0:44:14So, with her parents loaning her around 60 grand,
0:44:14 > 0:44:19Ailsa has put an offer in on a three-bed house in Pudsey.
0:44:19 > 0:44:22With the support of Mum and Dad, she's put in an offer just over £5,000
0:44:22 > 0:44:27less than the asking price and is waiting to hear whether it's been accepted.
0:44:27 > 0:44:29Hello...
0:44:31 > 0:44:33They've accepted it, Mum.
0:44:33 > 0:44:36Congratulations, Ailsa, time to speak to best mate, Lauren,
0:44:36 > 0:44:38to let her know they're moving.
0:44:40 > 0:44:43- Hurray.- Oh, my God.- House.
0:44:43 > 0:44:48- You're a homeowner. - I know. I'm a grown-up.
0:44:48 > 0:44:51- We will have a drink tonight to celebrate.- Yeah, celebrate.
0:44:51 > 0:44:54Celebrate. Like grown-ups.
0:44:57 > 0:45:00Now the hard work begins and Ailsa's keen to sort out all
0:45:00 > 0:45:04the boring stuff out herself, like surveys and solicitors.
0:45:04 > 0:45:06This could get interesting.
0:45:06 > 0:45:10I thought that the surveyor had been in
0:45:10 > 0:45:13because I received some paperwork from someone.
0:45:13 > 0:45:18I then found out that wasn't the surveyor, that was the solicitor who was doing a search on the area,
0:45:18 > 0:45:21so we haven't actually got a surveyor...
0:45:21 > 0:45:22yet.
0:45:22 > 0:45:24So this is the difficult bit.
0:45:24 > 0:45:28We're communicating with everyone and I keep thinking that I've got something but I don't.
0:45:28 > 0:45:32Searches on a property identify any potential problems,
0:45:32 > 0:45:36or issues in the area. Some of which you'd never thought possible.
0:45:36 > 0:45:39I didn't know that you had a search on
0:45:39 > 0:45:42that you're not at risk of radioactivity.
0:45:42 > 0:45:44But, I'm not. That's good.
0:45:44 > 0:45:47I don't really know what a survey is!
0:45:47 > 0:45:50Mum, was like, "No, a survey is where they go into the house
0:45:50 > 0:45:53"and check like the foundations and the walls
0:45:53 > 0:45:56"to make sure it's structurally safe." I was like, oh.
0:45:58 > 0:46:03"Please note that much of the information given is highly technical
0:46:03 > 0:46:05"and that I am not able to interpret it for you."
0:46:05 > 0:46:08Which means, THEY don't understand it either
0:46:08 > 0:46:11so I've got no hope of understanding it.
0:46:11 > 0:46:13But we'll book one anyway.
0:46:18 > 0:46:22Hiya, my name's Ailsa Westwood. I was calling to see if anyone could recommend a surveyor at all.
0:46:22 > 0:46:25Yeah, what sort of survey are you wanting?
0:46:25 > 0:46:29I think it's an industrial one, I'm not 100% sure.
0:46:29 > 0:46:33- Is it a building?- Yeah. - Right, OK, that's fine.- Yeah.
0:46:33 > 0:46:37I'll ask them to give you a call and give you a quote of how much it's going to be. OK?
0:46:37 > 0:46:39Thanks very much, bye.
0:46:40 > 0:46:43I'll give my mum a call and tell her what's happening.
0:46:43 > 0:46:44Hello...
0:46:44 > 0:46:48Hello. What about the survey?
0:46:48 > 0:46:52I spoke to someone at the estate agents
0:46:52 > 0:46:56and they have given my number to a surveyor.
0:46:56 > 0:47:02It's not a structural survey you need doing, it's a buyer's survey.
0:47:02 > 0:47:04I'm pretty sure I said "industrial".
0:47:04 > 0:47:07You're buying a house, not an industrial unit.
0:47:07 > 0:47:10Well, what's an upward chain?
0:47:10 > 0:47:11SHE LAUGHS
0:47:11 > 0:47:12- OK?- Bye.
0:47:12 > 0:47:16And it can be very confusing understanding all the jargon.
0:47:16 > 0:47:19When we were looking at houses,
0:47:19 > 0:47:21it says "No upward chain".
0:47:21 > 0:47:24I was like, "Oh, we want one with no upward chain."
0:47:24 > 0:47:28Mum was like, "Yeah, we do." I was like, "Because that'll mean it's in a safe area."
0:47:28 > 0:47:30She went, "Why do you think that?"
0:47:30 > 0:47:33I was like, "Because there's no chain on the door.
0:47:33 > 0:47:36"Does that not mean that?" She was like, "Oh, God. No."
0:47:36 > 0:47:39I was like, "Oh, I thought it meant there was no chain on the door
0:47:39 > 0:47:41"so it would be nice area to live in."
0:47:41 > 0:47:43SHE LAUGHS
0:47:43 > 0:47:46No upper chain actually means the house seller doesn't need
0:47:46 > 0:47:50the money from the sale of the property to finance another
0:47:50 > 0:47:54purchase, which is ideal as being in a chain can be problematic
0:47:54 > 0:47:56when someone in it pulls out.
0:47:59 > 0:48:03Finally, Ailsa gets her head around it all and books a buyer's survey.
0:48:03 > 0:48:07The survey typically costs upwards of £250
0:48:07 > 0:48:10and checks the general condition of the property.
0:48:10 > 0:48:14This includes looking at the drains and signs of damp.
0:48:17 > 0:48:21And, after all that hard work, it's time to have some fun.
0:48:21 > 0:48:24Most of the furniture in her future home is up for grabs.
0:48:24 > 0:48:27So Ailsa wants to snap it up.
0:48:27 > 0:48:29We definitely wanted the sofas.
0:48:29 > 0:48:33There is nothing of any sentimental value in this house that I'm not prepared to sell.
0:48:33 > 0:48:37- I think you want anything that Tina's flogging, really, don't you?- Yeah.
0:48:37 > 0:48:42Ailsa's mum, Janet, is there to make sure the girls drive a hard bargain.
0:48:42 > 0:48:44Shall we start at two grand?
0:48:44 > 0:48:46You can start at two grand.
0:48:46 > 0:48:48THEY LAUGH
0:48:48 > 0:48:52- I'd go 2,500.- Shall we go to 2,250 and call it a deal?- Yeah.
0:48:52 > 0:48:55There we are, a deal.
0:48:55 > 0:48:57Yay, thank you.
0:48:57 > 0:49:03So for £2,250 Ailsa has got herself practically all
0:49:03 > 0:49:05the furniture in the house, except the clock.
0:49:05 > 0:49:08Job done. Well done, Mum.
0:49:08 > 0:49:11So, Richard, it's nearly the end of the programme.
0:49:11 > 0:49:17What are your absolute top golden tips for getting onto the property ladder?
0:49:17 > 0:49:21The first one, be warned, it's boring but it's essential.
0:49:21 > 0:49:24You've got to be serious about saving.
0:49:24 > 0:49:27We seen lots of ways to save money from living with a granny,
0:49:27 > 0:49:29to moving back home,
0:49:29 > 0:49:32which are the big winners compared to things such as skipping
0:49:32 > 0:49:35the odd pint down the pub and making your own sarnies for lunch.
0:49:35 > 0:49:38Secondly, look for a property that you are going to be prepared
0:49:38 > 0:49:41to live in for five years, or more.
0:49:41 > 0:49:45You don't want to be shelling out another lump sum on stamp duty or legal fees
0:49:45 > 0:49:48when you decide to move from a one-bed to a two.
0:49:48 > 0:49:52So if you don't quite have enough to get the property that you want?
0:49:52 > 0:49:54- Wait.- Wait.
0:49:54 > 0:49:56Bide your time, do it right.
0:49:58 > 0:50:03Now we're off to Leeds for the final time to see how best friends
0:50:03 > 0:50:08Ailsa and Lauren, and the so huggable Sarah and Craig,
0:50:08 > 0:50:11and the business brain that is Shree, are getting along.
0:50:11 > 0:50:13I've got my fingers crossed.
0:50:18 > 0:50:21Self-proclaimed entrepreneur, Shree, has been looking
0:50:21 > 0:50:24for a perfectly-priced bachelor pad
0:50:24 > 0:50:26in the heart of happening Leeds for months.
0:50:27 > 0:50:31But, is he trying to drive too hard a bargain?
0:50:31 > 0:50:34I'm being a bit cheeky, I'm going quite a bit below the guide price
0:50:34 > 0:50:38but I'm hoping, since it's meant to be a buyers' market,
0:50:38 > 0:50:41so hopefully the developer will accept it.
0:50:42 > 0:50:47Shree has been putting in offers up to 20,000 below the asking price.
0:50:47 > 0:50:49So has he learnt anything?
0:50:50 > 0:50:53I'm prepared to make an offer now.
0:50:53 > 0:50:57I'd like to offer £85,000.
0:50:57 > 0:51:01- Right, OK. Is that a serious offer? - Yes.- Yeah, OK, fine.
0:51:02 > 0:51:10It's on the market for 90 grand and is identical to the previous flat he'd put an offer on.
0:51:10 > 0:51:14So will this seller accept 5,000 less than the asking price?
0:51:16 > 0:51:19I didn't expect the estate agent's reaction
0:51:19 > 0:51:21to be as gobsmacked, really.
0:51:21 > 0:51:24So, based on what she said about the seller,
0:51:24 > 0:51:28I think I stand a good chance. I stand good chance.
0:51:28 > 0:51:32There might be some negotiations involved, but we'll see. We'll see what happens.
0:51:37 > 0:51:40Shree's already got a mortgage in principle agreed
0:51:40 > 0:51:42and a couple of days after putting in the offer,
0:51:42 > 0:51:46he calls the estate agent to see if there is any news.
0:51:46 > 0:51:49Hi, Elizabeth, it's Shree. How are you?
0:51:51 > 0:51:54OK. Fantastic!
0:51:54 > 0:51:57That is fantastic news.
0:51:57 > 0:51:59Great, thanks a lot, Elizabeth.
0:51:59 > 0:52:02All right, you too. Speak to you soon.
0:52:02 > 0:52:03All right, Cheers, bye.
0:52:05 > 0:52:10Well, er, from the smile on my face I think you'll know they took my 85 grand offer.
0:52:15 > 0:52:17Shree's finally sealed the deal.
0:52:17 > 0:52:20I feel great. This is what I've wanted.
0:52:20 > 0:52:26And especially because I put in the same offer for a very similar flat the week before
0:52:26 > 0:52:29and I got plain out rejected, there was no negotiation.
0:52:29 > 0:52:33To have someone say, "Yeah, fine, that's a reasonable offer,"
0:52:33 > 0:52:36makes me think I was on the right track with the other flat, as well.
0:52:36 > 0:52:38So, it's fantastic.
0:52:38 > 0:52:39Should I have gone down?
0:52:39 > 0:52:42Would I have got away with 82, maybe 80 grand?
0:52:42 > 0:52:45Now I need to go home and Google what the next steps are
0:52:45 > 0:52:49and then just tell my parents the good news and get the ball rolling.
0:52:51 > 0:52:54It will be at least a couple of months before Shree can move in,
0:52:54 > 0:52:59but he's picked up a posh pad for 85K, which was his plan all along.
0:53:06 > 0:53:08It's been a tough old year for Craig and Sarah
0:53:08 > 0:53:12and, although it might take them a year or two to save for that essential deposit,
0:53:12 > 0:53:15they are now armed with all the important info.
0:53:16 > 0:53:18We've come a long way.
0:53:18 > 0:53:22We know, not everything, of course, but we know a lot more now than we did back then.
0:53:22 > 0:53:26- We know we needed a deposit, didn't we, of, like, 10% or five somewhere.- Yeah.
0:53:26 > 0:53:28And we still do.
0:53:28 > 0:53:29HE LAUGHS
0:53:29 > 0:53:33But, obviously, he's told us about all them different schemes there is.
0:53:33 > 0:53:37- That's obviously given us an idea... - Yeah.
0:53:37 > 0:53:40..on what we can save and how much we might need and stuff.
0:53:40 > 0:53:45And it's going to help for the future,
0:53:45 > 0:53:50so, when we can afford it. In that case, job done.
0:53:50 > 0:53:55Hopefully they'll be able to pick up the keys to their first home in the very near future.
0:54:01 > 0:54:05It's finally moving day for Ailsa and her best mate, Lauren.
0:54:05 > 0:54:12They've done some of the packing but, thankfully, Mum and Dad are on hand, again to help out.
0:54:12 > 0:54:14# I belong with you You belong with me
0:54:14 > 0:54:18# You're my sweetheart... #
0:54:18 > 0:54:21It's been a relatively smooth ride to home ownership for Ailsa
0:54:21 > 0:54:26but what she wasn't expecting was a very teary former resident.
0:54:27 > 0:54:29- SHE WHISPERS:- She's crying.
0:54:29 > 0:54:33I know it's not my fault but I just feel bad.
0:54:34 > 0:54:37I know, yeah. I feel I've just come in like...
0:54:38 > 0:54:41It's not... I feel bad.
0:54:41 > 0:54:44- It's OK.- I know.
0:54:47 > 0:54:49SHE MOUTHS
0:54:52 > 0:54:54I feel like I've just kicked a perfectly nice lady out of her house.
0:54:54 > 0:54:57- I feel quite bad. - She's left everything.
0:54:57 > 0:55:01- Upstairs she's bought us new mattress for my room. - All the towels.
0:55:01 > 0:55:04All the towels. She's bought new bedding.
0:55:04 > 0:55:07I very much feel like I've landed on my feet.
0:55:08 > 0:55:13The first house she went into, we're going to chuck everything in for you.
0:55:13 > 0:55:17Fair enough, it's taken a while, but...
0:55:19 > 0:55:21Ailsa's now a grown-up.
0:55:21 > 0:55:24It's taken nearly four months but she's got there.
0:55:24 > 0:55:26Well done, Ailsa.
0:55:26 > 0:55:27Whee!
0:55:27 > 0:55:32Thank you so much to our lovely Leeds residents.
0:55:32 > 0:55:35It's been a bit of an emotional roller coaster for some.
0:55:35 > 0:55:38Huge congratulations, again.
0:55:38 > 0:55:43So the ultimate question is, should you buy, or not?
0:55:43 > 0:55:49It could mean sacrificing some stuff to get that all-important deposit together
0:55:49 > 0:55:52so you might decide it's not the right time for you.
0:55:52 > 0:55:56But, if you do decide to go for it, remember it is your home as well
0:55:56 > 0:56:00as a potential investment, so make sure it's the right place for you.
0:56:00 > 0:56:03More information on making that choice,
0:56:03 > 0:56:06and tips from all our programmes, are on our website.
0:56:06 > 0:56:08Good luck!
0:56:08 > 0:56:14# So we're bleeding out
0:56:14 > 0:56:17# I belong to you You belong to me
0:56:17 > 0:56:20# You're my sweetheart
0:56:20 > 0:56:24# I belong to you You belong to me
0:56:24 > 0:56:27# You're my sweetheart!
0:56:27 > 0:56:28# Hey! #
0:56:28 > 0:56:31Subtitles by Red Bee Media Ltd