The United Kingdom housing market has witnessed lots of ups and downs( mostly downs) over the past couple of years. However there are signs that the market has finally begun to stabilise and many industry experts are forecasting small price increases for many areas. The most recent information from WhatHouse? showed that average house prices have risen by nearly £5,000 in 2011. So if you are a first time buyer is it a good time to go into the market? Although there have been some gains prices are still lower than they were at the same time 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 the market will see some modest increases but will remain fairly stable. So if you are thinking about buying a home I would say do it now. Whilst prices might not rise much further they are unlikely to drop and you will get some great deals from many home builders on new homes. If you’re thinking about buying your first home or flat here are some tips:
Mortgage and Other Costs
This is the largest obstacle for many people and one reason why the market is so flat at the moment. The times of loan providers being ready to give 100% mortgages are gone. These days you’ll need at least a 10% deposit to be able to get the best deals with the lowest rates of interest. However some 95% mortgage deals at competitive rates have started to appear for those with good credit. Obviously there are a number of other things you need to save and budget for as well as a deposit. There is stamp duty to pay on many homes, solicitor’s fees and surveyor’s fees as well. Do not forget the cost of furnishing your home and the fact you will be paying the bills by yourself. This can come as a shock if you’ve been living in a shared property or with parents. New or Used Home? Should you invest in a new or used property? With the current lack of activity within the housing market a lot of developers find themselves with a big stock of unsold new properties on their hands. You can find some great deals on new properties with many developers reducing asking prices significantly. Many developers are also offering incentives including free white goods or assistance with finding a deposit. In general new properties are also cheaper to run and will come with a 10 year guarantee.
Shared Ownership
The popularity of shared ownership plans has grown considerably in recent years. They allow people to buy a share in a house which they normally would be unable to afford . A mortgage is paid on the part of the property you own and rent to a housing association that owns the other share. You can increase the share of the home you own over time so that eventually you are able to own 100% of it. Another choice is buying with a friend or group of friends. Although this can seem like a good idea it can be fraught with pitfalls for the unwary. Always use a solicitor to draw up agreements and ensure that everyone knows their obligations and responsibilities.
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