In September 2017, website YourMoney.com looked at whether or not it is possible to buy a home for less than the price of a new car.
The average house price in the UK has risen by 3% during the last year, and now costs an average of £220,000. Many people are struggling to save for the deposit needed to purchase their first home.
Online estate agent HouseSimple.com has revealed that it is possible to purchase a house for between £9,000 to £14,000, which is less than the cost of buying many new car models. Most of the UK’s cheapest properties are in Scotland, with the cheapest one found being a two-bedroom cottage in West Lothian going for a paltry £9,000.
There are two major drawbacks to buying properties at such low prices; first of all, they are all sold at auctions, meaning the low prices are guide prices and a higher winning bid is likely. Secondly, the houses will require extensive refurbishment work, which will cost a few thousand pounds extra.
Mortgages are available for as little as £10,000, but these low priced houses are classed as unfit to live in, so most mortgage lenders will not provide one. Bridging loans are available to finance the refurbishment work. After the work has been completed and the home revalued, a standard mortgage may be available to repay the bridging loan.
Though buying a home for less than the price of a new car will end up costing you much more, it should still work out cheaper than buying an average price home.