Predicting which way the united kingdom property market will go is not easy. The last few years have seen many industry experts make strong statements about recovery that never actually materialised. However it finally looks like the recovery is on the way for most parts of the country. Most parts of the country have seen small but significant price increases this year with £5,000 being added to the value of the average property. So if you’re a first time buyer is it a good time to enter the market? While prices have increased slightly they are still less than they were at this time last year. The outlook for the rest of 2011 and early 2012 varies on whom you listen to. Overall the general consensus seems to be the market will see some small gains but will stay fairly stable. So if you are a first time buyer now is a great time to begin looking. Prices are not likely to drop and there are some excellent deals available on new homes. If you are thinking of buying your first home in the near future here are a handful of quick tips to help you out.
Mortgage and Other Costs
Saving a 10% or even bigger deposit usually takes years and is a reason for the recent lack of activity in the housing market. The times of lenders being prepared to give 100% home loans are gone. These days most financial institutions and building societies want a 10% deposit to obtain the best deals. However more 95% deals have started to appear in the last few months in particular for those who have excellent credit ratings .. A deposit is of course just one of the many items that you will need to save for. You must also save for stamp duty, solicitor’s and surveyor’s charges and moving fees. Purchasing furniture and home appliances for the home are other expenses to think about. Finally you will have to plan for bills which will be much larger than in shared accommodation or if you’ve been living with parents. New or Used Home? Should you purchase a used or new home? With the current lack of activity in the housing market many developers find themselves with a large stock of unsold new houses on their hands. You can find some good deals on new houses with many developers lowering asking prices significantly. Many developers are also offering incentives like free white goods or help with finding a deposit. New build homes will also include a free 10 year warranty from the developer and are a lot cheaper to run and look after.
Shared Ownership
Shared ownership is amongst the best ways for many first time buyers to be able to find the money for their first home. With a shared ownership program you pay a mortgage on the share of the house you own and pay rent on the rest to a housing association. Over time you increase the amount of the home you own. There are many shared ownership schemes throughout the UK with many of them geared towards key workers like medical professionals, firemen and teachers. Another option is to consider buying a home with a few of your close friends. While this can seem like a good option it can be fraught with pitfalls for the unwary. Always use a lawyer to draw up agreements to make sure that everyone knows their duties and responsibilities.
Looking for new homes West Midlands? Visit the new and improved What House site.