With massive deposits required and extremely strict lending criteria, taking the first step onto the property ladder is a real battle for first-time buyers today. Prolific investor Martin Roberts doesn't envy those struggling to trying to get onto the bottom rung in this tough climate.However, the TV presenter and expert says it was challenging in a different way when he bought his first property 25 years ago.
Martin, who was born in Warrington, bought his first place at the tender age of 22 when a fixed interest mortgage rate of 15% was considered reasonable. Unlike the 1% options available now, it left him with massive bills to pay.
He says: "My first property was £22,000, but the monthly repayments were massive. It was really difficult as I wasn't earning much and I wouldn't want to do it again. The government incentives today like NewBuy and FirstBuy are great if you meet the criteria but I do see first-time buyers all the time who are really struggling. Deposits are a challenge for anyone to get together, including myself, so if you can use one of these schemes they can be a massive help to get you started."
Martin, who has presented several TV programmes including Wish You Were Here...? and Put Your Money Where Your Mouth Is, has owned a wide portfolio of different properties. While he has more experience developing older properties, Martin's thoroughly impressed by how cheap to run, easily maintained and energy efficient new homes are.
When he isn't working on a new DIY project or travelling around the country filming Homes Under The Hammer, Martin is delivering weekend training workshops in which he gives aspiring investors a thorough grounding in topics like how to raise finance and investment strategy. If you want to know more about Making Money From Property with Martin Roberts courses, or the companion book, click here.
Where did your interest in property come from?
My dad was always doing up houses and he was DIY mad. When I was growing up, our home was constantly in a state of chaos. My grandfather was also a bit of a property entrepreneur - he had a whole street of houses in Liverpool - so it is in my genes. When I sold my first property in Stockport for double the amount I'd bought it for I realised that I could make a decent amount of money from property developing. I came away with £20,000 profit - much more than my yearly earnings working at a local radio station. I've now been investing for 25 years and love the whole process. There is no buzz like spotting the potential in a property and then transforming it.
How do you enjoy working on Homes Under The Hammer?
I absolutely love my job and have been involved with the show from the pilot episode. Next year is our 10th anniversary and it's incredible to think about the amount of people we've worked with over the years. There have been many fascinating stories and some incredible properties including a Tudor mansion, a Napoleonic fort and a water tower. There have been nearly 1,000 episodes and the team have visited at least 2,000 properties. As a property nut I enjoy everything about it, but the most rewarding thing is when people tell me they have taken our advice and it has really worked for them. I never get tired of hearing that.
Have you ever been confronted about encouraging people to use property as a money maker at a time when first-time buyers are struggling?
Personally, no I haven't because I go out of my way to help people invest sensibly and not in the ‘gung ho' manner that we were seeing before the crash. Intrinsically, property is a good thing to get involved in and it is still a safe investment if it's done right. Obviously, for first time-buyers,getting the deposit is a lot harder now but it means that people are forced to really think about what they are doing.
What inspired your BBC documentary series How To Survive The Property Crisis?
People really needed good advice at such a confusing time so I used my own experiences during the 2008 situation to guide others. The crisis badly affected even the most astute, business-minded people and changed the property market drastically. It is gradually recovering but I'd like to see more support for the building industry from government. If it is seen as the potential saviour of the economy then it would be useful to give some tax breaks to those in the industry.