Making predictions about the UK property is not always easy. The last few years have seen numerous industry experts make strong statements about recovery that never really materialised. However several signs are starting to appear that the worst could be over for UK home owners. Most parts of the country 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 or should you hold out a little longer? Whilst prices are on their way up once again they are still at lower levels than July last year. Forecasts for 2011 and 2012 vary considerably depending on where they come from. However many experts are of the viewpoint that the market will remain flat or see modest price rises. So if you’re thinking of buying a home I’d say do it now. Prices are not likely to drop and there are some great deals available on new houses.
If you are thinking of buying your first home in the near future here are a handful of quick tips to help you out.
Mortgage and Other Costs
The need for large deposits has slowed down activity in the housing market significantly. With relatively few new buyers going into the market the volume of homes sold reached a record low in 2010. However while most loan providers still reserve their best deals for those with a 10% or greater deposit there are signs of the restrictions on lending reducing. There are now a lot more 95% home loan deals available with competitive rates.
When you’re saving for your first property the deposit is just one of the numerous costs you will have to think about. You will also need to save for stamp duty, solicitor’s and surveyor’s charges and moving costs. Furnishing your home and decoration are other expenses you will have to meet. Finally it’s worth taking the time to budget for the bills you will need to pay each month.
New or Used Home?
Should you buy a used or new home? With the current lack of activity within the housing market many developers find themselves with a large stock of unsold new properties on their hands. You can get some terrific deals on new properties with many developers reducing asking prices substantially. Many developers are also offering incentives such as free white goods or assistance with finding a deposit. In general new properties are also cheaper to run and will come witha 10 year warranty.
Shared Ownership
Shared ownership schemes have become increasingly popular for first time buyers. With a shared ownership program you pay a mortgage on the share of the property you own and pay rent on the rest to a housing association. With time you increase the amount of the home you own. There are lots of shared ownership schemes 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 is to think about purchasing a property with some of your friends. Although this can seem like a good option it can be fraught with stumbling blocks for the unwary. Make sure that you make use of a solicitor to draw up legally binding contracts. Find new homes Derbyshire with What House?