Predicting which way the united kingdom home market will go is not easy. The last few years have seen many industry experts make bold claims about recovery that never actually materialised. However it finally looks like the recovery is on the way for most parts of the country. Many parts of the country have seen small increases in value this year and the pattern seems set to carry on into next year as well. 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 last year. Predictions for 2011 and 2012 vary considerably according to where they come from. However most experts are of the viewpoint that the market will stay flat or see small price rises. So if you are thinking about investing in a home I’d say do it now. Whilst prices might not rise much further they are unlikely to drop and you can get some good deals from many property builders on new houses. If you’re thinking about buying your first home or flat here are some pointers:
Mortgage and Other Costs
This is the biggest obstacle for most people and one reason why the marketplace is so flat right now. The days of 100% or higher mortgages are well and truly finished. These days most financial institutions and building societies want a 10% deposit to get the best deals. However some 95% mortgage loan deals at competitive rates have started to appear for people with good credit. When you are saving for your house there are many other costs that you need to consider as well as the deposit. On some homes depending on the price you’ll have to pay stamp duty . You should also budget for solicitor and surveyor’s expenses and also land registry fees. You will also have to furnish your new house and pay for all of the bills. This can be quite an increase in your monthly budget if you’ve been living with your parents or in shared accommodation. New or Used Home? With the lack of activity inside the housing market there are many developers with a stock of unsold new properties on their hands. You can find some terrific discounts and incentives that can help you save as much as 10% from the asking price. A new home will also be built to better standards and have a 10 year warranty. Although a used home may be slightly cheaper it will cost much more to maintain and heat.
Shared Ownership
The popularity of shared ownership plans has grown considerably in recent years. They allow people to purchase a share in a home 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. It is possible to increase the share of the home you own with time so that eventually you can own 100% of it. Joining a shared ownership plan means that you do not have to save for years to find a large deposit and you can get on the property ladder much sooner. Another option you could consider is purchasing a home with a group of your friends. This might seem like an attractive choice but can have its downside. Always use a solicitor to draw up agreements and ensure that everybody knows their obligations and responsibilities.
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