The home market in the united kingdom has seen considerable price falls in the last few years. However there are indications the market has finally begun to stabilise and many experts are predicting small price increases for many regions. Information released by Zoopla in July reported that average house prices rose by about £5,000 in 2011 with the average home in the UK now priced at £216,534.
So is now a great time to buy if you are a first time buyer? Whilst prices are on their way up once again they are still at lower levels than July a year ago. Forecasts for 2011 and 2012 differ considerably depending on where they come from. The overall consensus is prices will increase a little or continue to be flat. So if you’re a first time buyer now is a good time to begin looking. The cost of property is unlikely to fall and while any rises may be small they will only add to the expense of purchasing a house.
If you’re thinking about buying your first home or flat here are some tips:
Mortgage and Other Expenses
The need for big deposits has slowed down activity in the housing market considerably. With a lack of new buyers entering the market it’s taking a lot longer for properties to sell. In fact the number of sales in 2010 reached a record low. However while 10% mortgage deals are still the norm there are indications that loan providers are reducing their restrictions on lending slightly. There are now far more 95% home loan deals available with competitive rates.
A deposit is of course not all you need to save for when you want to buy a home. You’ll have to pay for stamp duty, solicitor’s costs, surveyor’s fees and also land registry expenses. You will also need to furnish your new house and pay for all of the bills. This can be quite an increase in your monthly budget if you have been living with your parents or in shared accommodation.
New or Used Home?
With the lack of activity in the housing market there are lots of developers with a stock of unsold new homes on their hands. If you look around you can find some great deals on new build homes with many developers giving a range of incentives to encourage people to buy them. A new home will also be built to much better standards and come with a 10 year warranty. Although a used home might be cheaper to buy it’ll be more expensive to run and look after.
Shared Ownership
Shared ownership schemes have become a lot more common in recent times. They enable people to buy a share in a home which they otherwise would not be able to afford . A mortgage is paid on the portion of the property you own and rent to a housing organization that is the owner of the other share. It is possible to increase the share of the property you own with time so that ultimately you can own 100% of it.
Another option is to think about buying a property with some of your friends. This might appear like an attractive option but can have its downside. Always use a solicitor to draw up agreements to make sure that everyone knows their duties and responsibilities. Find new homes Kent using What House?
written by Tyrone
\\ tags: new homes
Making predictions around the UK property is not an easy task. Over the last couple of years there have been a number of false dawns and promises of recovery that never materialised. However it finally looks like the recovery is on the way for most parts of the country. Many areas have seen small increases in value this year and the trend seems set to continue into next year as well.
So is now a good time to purchase or should you wait a little longer? Whilst there have been some increases prices are still less than they were at the same time last year. The forecast for the rest of 2011 and early 2012 varies on who you listen to. However many experts are of the opinion that the market will remain flat or see small price rises. So if you are thinking of purchasing a home I would say do it now. The cost of property is unlikely to fall and while any increases may be small they will only add to the cost of purchasing a house.
if you are entering the market for the very first time here are a handful of tips to help you out.
Mortgage and Other Costs
Saving a 10% or larger deposit usually takes years and is a reason for the recent lack of activity within the housing marketplace. The times of loan providers being willing to give 100% home loans are gone. These days 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 a good credit score.
Obviously there are a number of other things you need to save and plan for as well as a deposit. There is stamp duty to pay on many properties, solicitor’s fees and surveyor’s fees as well. You’ll also need to furnish your new home and pay for all of the bills. This is often quite an increase in your monthly budget if you’ve been living with your parents or in shared accommodation.
New or Used Home?
Should you invest in a used or new home? With the current lack of activity within the housing market a lot of developers find themselves with a big stock of unsold new homes on their hands. There are some great deals available on new properties with lots of developers reducing asking prices by as much as 10%. In addition to reducing prices many developers are offering other incentives like help with finding a deposit, part exchange schemes and free white goods and home appliances. Generally new properties are also cheaper to run and will come with a 10 year guarantee.
Shared Ownership
Shared ownership is one of the best ways for many first-time buyers to be able to find the money for their first home. You take out a home loan for the portion of the house you own and pay rent on the other part to a housing organization. With time you increase the amount of the home you own. There are many shared ownership schemes in the UK with many of them geared towards key workers such as medical workers, firemen and teachers.
Another option is buying with a friend or group of friends. While this can seem like a good option it can be fraught with pitfalls for the unwary. Ensure that you make use of a lawyer to draw up legally binding contracts. To find out more about new build homes in the UK visit the WhatHouse? website.
written by Tyrone
\\ tags: new homes
2011 could be the year when the home market in England gets back on its feet and actually starts to recover fully. Confidence is slowly but surely returning to the industry and a lot more people are looking to purchase new build homes. The restrictions on home loan lending are beginning to slacken and more first time buyers are being enticed into the marketplace. Nonetheless most financial institutions and building societies still need a minimum of a 10% deposit and the times of 100% mortgage loans have gone. In case you are considering investing in a new build home this coming year you ought to check out the What House internet site. They have information from all the UK’s new home builders and developers and experts tips about all things linked to the property market like home loans, investing etc. You’ll find on the site an entire list of new homes for sale near you and trends in the local home market. New build homes have started to become much more popular with first time buyers. They are seen as a sound investment for several different reasons and have a number of advantages over used homes. These include the fact new houses feature a warranty that provides total peace of mind when you move in. New homes are also a lot more energy efficient than older homes and cost much less to run. New homes also feature the most innovative designs and finishes and come with the latest home appliances, fitted kitchens and bathrooms. Many homebuilders and developers in Britain are now giving some fantastic bonuses which help make purchasing new build homes even easier. So if you’re thinking of selling or buying this year ensure that you visit the What House web page. Looking for new homes West Midlands? Visit the new and improved What House site.
written by Tyrone
\\ tags: new homes
Recent Comments