Making forecasts around the United Kingdom property is not an easy task. Over the last few years we have seen a number of false dawns and claims of recovery that never materialised. However it finally looks like the recovery is on the way for most regions. Many areas have seen small price increases in 2011 with £5,000 being added to the value of the average house. So is now a good time to buy if you are a first-time buyer? While prices are on their way up once again they are still at lower levels than July last year. Forecasts for 2011 and 2012 vary considerably according to where they come from. However many experts are of the viewpoint that the market will stay flat or see modest price rises. So if you’re a first time buyer now is a good time for you to begin looking. Whilst prices might not rise much further they’re unlikely to drop and you can find some great deals from many home builders on new homes. if you are going into the market for the first time here are a handful of tips to help you out.
Mortgage and Other Costs
This is the biggest obstacle for most people and one reason why the marketplace is so flat at this time. The times of 100% or higher mortgages are well and truly finished. These days most banks and building societies demand a 10% deposit to get the best deals. However some 95% mortgage deals at competitive rates have started to appear for those with a good credit rating. Obviously there are a number of other things that you have to save and budget for as well as a deposit. There is stamp duty to pay on many homes, solicitor’s fees and surveyor’s fees as well. You’ll also need to furnish your new house and pay for all of the bills. This can be quite an increase in your monthly budget if you have been living with your parents or in shared accommodation. New or Used Home? With the lack of activity inside the housing marketplace there are lots of developers with a stock of unsold new homes on their hands. If you shop around you’ll find some terrific deals on new build homes with many developers offering a variety of incentives to encourage people to buy them. A new property will also be built to better standards and come with a 10 year warranty. Whilst a used home may be cheaper to buy it’ll be more expensive to run and look after.
Shared Ownership
Shared ownership schemes are becoming increasingly popular for first time buyers. With a shared ownership program you pay a mortgage on the share of the house you own and pay rent on the remainder to a property association. With time you increase the amount of the home you own. There are many shared ownership programmes throughout the country and they are often the best way to get on the property ladder particularly for key workers like nurses, teachers and police. Another choice is purchasing with a friend or group of friends. This might seem like an attractive choice but can have its downside. Ensure that you use a lawyer to draw up legally binding agreements.
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