Many people find it difficult to get their feet on the housing ladder these days. According to the Nationwide's House Price Index the average UK home is now worth £168,9411, and deposit requirements based on a percentage of the house price make that first purchase even more difficult.
It is still possible to find a home for under 100k however. You just need to know where to look and at times be prepared to put in a little effort on renovation.
Location, location, location
Let's face it; you're not going to find much in Kensington and Chelsea for under a hundred grand. The average resident of the London borough now has to fork out more than 27 times their salary to buy a home in the area in fact, according to the figures by Marketing Metrix2. The median house price is just under a cool £1 million.
There are wide regional variations however, and if you already live in an area where house prices are lower than the national average, or are prepared to move to get your feet on the ladder, you can often snap up a bargain. Burnley has the most affordable housing in the country, with a median house price of just over £63,000. Median prices in Stoke-on-Trent, Nottingham, Hull and Liverpool also come in way under £100k.
You might have noticed that these places are all in the north but there are also towns and cities in the south that buck the national trend. Use comparison and search sites to find affordable locations.
You might not feel entirely comfortable benefiting from another's misfortunes but in times of economic uncertainty there is usually an upswing in repossessed homes being put up for auction by the banks. Look at it this way though; if you don't snap up that bargain, a property speculator probably will. It's possible to snap up properties at auction for less than the market value but you should be sure you know what you're looking for.
Look for a 'fixer-upper'
A lot of repossessed homes require a degree of refurbishment but there are also many homes on the open market that require some work. The price will often reflect this but you will often be able to use defects to knock prices down further, especially if the property has been on the market for some time. Just be sure that you can handle the work and expense that comes with buying a property that requires extensive refurbishment.
Whichever area you decide to invest in, it’s crucial to secure the right home insurance cover for your needs.