Predicting which way the UK property market will go is not easy. The last few years have seen many industry experts make strong claims about recovery that never really materialised. However it finally looks like the recovery is on the way for many parts of the country. Many areas have seen small cost increases in 2011 with £5,000 being added to the value of the typical house.
So is now a good time to buy if you are a first time buyer? Whilst prices are on their way up once more they are still at lower levels than July last year. The outlook for the rest of 2011 and early 2012 varies on who you listen to. Overall the general consensus seems to be the market will see some small increases but will stay fairly stable. So if you are thinking of purchasing a home I would say do it now. The cost of property is unlikely to fall and while any increases may be small they will only add to the expense of buying a house.
If you are thinking of buying your first house in the near future here are a couple of quick tips to help you out.
Mortgage and Other Expenses
The demand for large deposits by most lenders is among the main reasons for the lack of activity in the market. With relatively few new buyers entering the market the number of homes sold reached a record low in 2010. However although 10% mortgage deals are still the norm there are indications that lenders are easing their restrictions on lending slightly. More 95% deals have started to appear on the market and while the interest on them may be slightly higher they’re still competitive.
When you’re saving for your first home the deposit is just one of the many expenses you will need to take into account. You must also save for stamp duty, solicitor’s and surveyor’s charges and moving costs. Furnishing your new household and decoration are other expenses you’ll need to meet. Finally it is well worth taking the time to plan for the bills you will have to pay every month.
New or Used Home?
With the low level of activity in the house market there’s a large stock of unsold new houses readily available. Many developers are offering some great deals and incentives on the properties they have to help them sell faster which can add up to 10% of the asking price. A new property will also be built to better standards and have a 10 year warranty. Although a used home may be a little cheaper it will cost more to take care of and heat.
Shared Ownership
Shared ownership schemes have grown to be much more common recently. They allow people to purchase a share in a property which they otherwise would not be able to afford . A mortgage is paid on the part of the property you own and rent to a housing organization that is the owner of the other share. It is possible to increase the share of the home you own with time so that ultimately you are able to own 100% of it. Joining a shared ownership plan means that you don’t need to save for years to find a huge deposit and you can get on the property ladder a lot quicker.
Another option is to consider purchasing a home with some of your friends. Although this can seem like a good option it can be fraught with pitfalls for the unwary. Always use a solicitor to draw up agreements and ensure that everyone knows their duties and responsibilities. Find new homes Derbyshire with What House?