The United Kingdom housing market has witnessed a number of ups and downs( generally downs) during the last few years. However it appears like the market has eventually stabilised and many regions are beginning to see prices climb slightly. The latest information from WhatHouse? indicated that typical house prices have gone up by almost £5,000 in 2011.
So is now a good time to purchase or should you hold out a little longer? While prices are on their way up once more they are still at lower levels than July last year. Predictions for 2011 and 2012 differ considerably according to where they come from. However many experts are of the opinion that the market will remain flat or see modest price increases. So if you’re a first time buyer now is a great time to start looking. Prices are not likely to drop and there are some great deals available on new homes.
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 Costs
This is the largest obstacle for most people and one reason why the marketplace is so flat at the moment. The days of 100% or higher home loans are well and truly over. Nowadays most financial institutions and building societies want a 10% deposit to obtain the best deals. However some 95% home loan deals at competitive rates have started to appear for those with good credit.
When you’re saving for your first house the deposit is just one of the numerous expenses you will have to take into account. You should also think about stamp duty if the property is over a certain value, solicitor’s fees 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 considerably larger than in shared accommodation or if you’ve been living with parents.
New or Used Home?
With the low level of activity in the property market there’s a large stock of unsold new homes readily available. If you shop around you’ll find some great deals on new build homes with many developers offering a variety of incentives to encourage people to purchase them. A new home will also be built to much better standards and come with a 10 year warranty. While a second hand home might be a little cheaper it will cost much more to take care of and heat.
Shared Ownership
Shared ownership schemes have grown to be a lot more common in recent years. They allow people to buy a share in a home that they normally 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 owns the other share. It is possible to increase the share of the property you own with time so that eventually you are able to own 100% of it.
Another choice is buying with a friend or group of friends. This may appear like an attractive choice but can have its downside. Make sure that you use a solicitor to draw up legally binding contracts. To find out more about new build homes in the UK visit the WhatHouse? website.