Forecasting which way the united kingdom home market is going is not easy. Over the last couple of years we have seen a number of false dawns and promises of recovery that never materialised. However several signs are beginning to appear that the worst could be over for United Kingdom home owners. Many regions have seen small cost increases in 2011 with £5,000 being added to the value of the typical house. So is now a good time to buy if you are a first-time buyer? Whilst prices have increased slightly they are still less than they were at this point last year. Forecasts for 2011 and 2012 differ considerably depending on where they come from. However many experts are of the opinion that the market will stay flat or see modest price rises. So if you’re thinking about buying a home I’d say do it now. Although prices might not increase much further they’re not likely to drop and you will find some good deals from many home builders on new houses. if you are entering the market for the very first time here are a couple of tips to help you out.
Mortgage and Other Costs
The need for big deposits has slowed down activity in the housing market significantly. With relatively few new buyers entering the market the number of houses sold reached a record low in 2010. However while most loan providers still reserve their best deals for those with a 10% or larger deposit there are signs of the restrictions on lending reducing. There are now a lot more 95% mortgage loan deals available with competitive rates of interest. Obviously there are a number of other things you need to save and plan for as well as a deposit. On some houses depending on price you will have to pay stamp duty . You will also need to plan for solicitor and surveyor’s expenses and also land registry costs. You will also need to furnish your new home and pay for all of the bills. This can come as a great shock if you’ve been living ina shared property or with parents. New or Used Home? Should you invest in a new or used home? With the current state of the housing marketplace there is a large stock of new houses that developers wish to sell. There are some excellent deals available on new properties with many developers reducing asking prices by as much as 10%. Many developers are also offering incentives such as free white goods or help with finding a deposit. New build homes will also have a free 10 year warranty from the builder and are much cheaper to run and look after.
Shared Ownership
Shared ownership is among the best ways for many first time buyers to be able to afford their first property. With a shared ownership scheme you pay a mortgage on the share of the property you own and pay rent on the rest to a property association. Over time you increase the amount of the property you own. There are many shared ownership programmes throughout the UK with many of them directed at key workers such as medical professionals, firemen and teachers. Another option is buying with a friend or group of friends. This might seem like an attractive choice but can have its downside. Ensure that you make use of a lawyer to draw up legally binding agreements.
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