First-time buyers told: Start small

He said: “If you’re a couple, do you really need a three-bedroom house that’s completely done up?”

People would be better to buy a smaller house, with a smaller mortgage, and try to pay the loan off, King said.

If they could get a do-up that they would be able to add value to, that would be even better.

People who claimed buying more expensive properties would result in bigger capital gains were right, he said, but there was a lot more potential for people to get into trouble.

“If there’s the opportunity to pay the mortgage off over the next few years, that puts you in a much better financial position.”