Predicting how the United Kingdom property market will behave in the next 12 months is never easy. Over the last few years there have been a number of false dawns and promises of recovery that never materialised. However it finally looks like the recovery is on the way for many regions. Most regions have seen small but significant price rises this year with £5,000 being added to the value of the typical home. So is now a good time to buy if you are a first time buyer? Whilst prices have increased slightly they are still lower than they were at this point last year. The forecast for the rest of 2011 and early 2012 varies on whom you listen to. The general consensus is prices will increase slightly or remain flat. So if you are a first time buyer now is a good time for you to begin looking. Prices are unlikely to drop and there are many great deals available on new houses. if you are going into the market for the very first time here are a handful of tips to help you out.
Mortgage and Other Expenses
The need for large deposits by many lenders is among the principal reasons for the lack of activity in the market. With relatively few new buyers going into the market the number of properties sold reached a record low in 2010. However whilst 10% mortgage deals are still the norm there are signs that loan providers are reducing their restrictions on lending a little. More 95% deals have begun to appear on the market and while the interest on them may be a little higher they are still competitive. A deposit is needless to say just one of the many items that you will have to save for. You must also save for stamp duty, solicitor’s and surveyor’s expenses and moving costs. Furnishing your new home and decoration are other costs you will have to meet. Finally you will have to plan for bills which will considerably larger than in shared accommodation or if you have been living with parents. New or Used Home? Should you purchase a used or new property? With the present state of the housing marketplace there is a large stock of new homes that developers are keen to sell. You can find some good deals on new properties with many developers reducing asking prices significantly. Many developers are offering incentives like free white goods or assistance with finding a deposit. New build homes will also have a free 10 year warranty from the developer and are much cheaper to run and maintain.
Shared Ownership
Shared ownership is amongst the best ways for many first time buyers to be able to afford their first home. You take out a home loan for the portion of the property you own and pay rent on the other part to a housing organization. With time you increase the amount of the property you own. There are lots of shared ownership programmes throughout the country and they can be a great way to get on the property ladder particularly for key workers such as nurses, teachers and police. Another option you could look at is purchasing a home with a group of your friends. This may appear like an attractive option but can have its downside. Always use a lawyer to draw up agreements and ensure that everyone knows their obligations and responsibilities.
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