Predicting the way the United Kingdom property market will behave in the next 12 months is never 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 many parts of the country. Many regions have seen small cost increases in 2011 with £5,000 being added to the value of the average home. So is now a good time to buy if you are a first time buyer? While prices are on their way up once more they are still at lower levels than July a year ago. The outlook for the rest of 2011 and early 2012 varies on whom you listen to. Overall the general consensus seems to be that the market will see some small increases but will stay fairly stable. So if you are a first time buyer now is a good time for you to begin looking. The cost of housing is unlikely to fall and while any rises may be small they’ll only add to the cost of purchasing a home. If you’re thinking of buying your first home in the near future here are a handful of quick tips to help you out.
Mortgage and Other Expenses
This is the greatest obstacle for many people and one reason why the market is so flat right now. The times of lenders being prepared to give 100% mortgages are gone. These days most banks and building societies want a 10% deposit to obtain the best deals. However more 95% deals have started to appear in the last couple of months particularly for those who have excellent credit scores. When you’re saving for your first property the deposit is just one of the numerous expenses you will have to think about. You will also need to save for stamp duty, solicitor’s and surveyor’s charges and moving costs. Purchasing furniture and appliances for the home are other expenses to think about. Finally you will have to plan for bills that will considerably larger than in shared accommodation or if you’ve been living with parents.
New or Used Home?
With the housing industry still flat developers are eager to sell new build houses. You can find some great discounts and incentives that can save you as much as 10% of the asking price. A new property will also be built to better standards and feature a 10 year warranty. While a used home may be slightly cheaper it’ll cost you more to maintain and heat.
Shared Ownership
Shared ownership schemes have become much more common recently. They allow people to buy 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 association that is the owner of the other share. You are able to increase the share of the home you own over time so that eventually you are able to own 100% of it. Another option you could consider is purchasing a house with a group of your friends. Although this can seem like a good option it can be fraught with stumbling blocks for the unwary. Ensure that you make use of a lawyer to draw up legally binding agreements.
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