The housing industry in the UK has been in a state of turmoil for the last several years. However there are indications that the market has at last begun to stabilise and several experts are predicting small price increases for many areas. Data released by Zoopla in July reported that typical house prices increased by about £5,000 in 2011 with the average home in the UK now costing £216,534. So is now a good time to buy or should you wait a little longer? Whilst there have been some gains prices are still less 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. However most experts are of the viewpoint that the market will stay flat or see modest price increases. So if you are a first time buyer now is a great time to start looking. Prices are not likely to drop and there are some great deals available on new properties. If you are thinking of buying your first house in the near future here are a handful of quick tips to help you out.
Mortgage and Other Expenses
This is the greatest obstacle for most people and one reason why the marketplace is so flat at this time. The times of loan providers being ready to give 100% mortgages have ended. These days you’ll need a minimum of a 10% deposit to be able to get the best deals with the lowest interest rates. However more 95% deals have started to appear during the last couple of months particularly for people with excellent credit ratings. When you’re saving for your first property the deposit is just one of the many expenses you will have to think about. You should also think about stamp duty if the property is over a certain value, solicitor’s fees and moving expenses. Purchasing furniture and home appliances for the home are other expenses to think about. Finally it’s worth finding the time to budget for the bills you will need to pay every month. New or Used Home? Should you purchase a new or used property? With the recent lack of activity within the housing market a lot of developers find themselves with a large stock of unsold new properties on their hands. There are some excellent deals available on new properties with many developers reducing asking prices by as much as 10%. As well as reducing prices many developers are offering other incentives like help with finding a deposit, part exchange programmes and free white goods and home appliances. In general new homes are also cheaper to run and will come with a 10 year guarantee.
Shared Ownership
Shared ownership schemes have become increasingly popular for first time buyers. With a shared ownership scheme you pay a mortgage on the share of the property you own and pay rent on the remainder to a housing association. With time you increase the amount of the home you own. There are lots of shared ownership schemes in the United Kingdom with many of them directed at key workers such as medical workers, firemen and teachers. Another option is purchasing with a friend or group of friends. This might appear like an attractive choice but can have its downside. Make sure that you make use of a solicitor to draw up legally binding contracts.
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