The housing industry in the united kingdom has been in a state of uncertainty for the last few years. However there are indications the market has eventually begun to stabilise and several industry experts are predicting small price rises for many areas. Information published by Zoopla in July stated that typical house prices rose by about £5,000 in 2011 with the typical home in the united kingdom now costing £216,534. So is now a good time to purchase or should you hold out a little longer? Whilst prices have increased slightly they are still lower than they were at this time last year. The outlook for the rest of 2011 and early 2012 varies on whom you listen to. Overall the general consensus appears to be that the market will see some modest gains but will stay fairly stable. 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 many great deals available on new properties. If you are thinking about buying your first house in the near future here are a couple of quick tips to help you out.
Mortgage and Other Costs
The need for big deposits by most lenders is one of the main reasons for the lack of activity in the market. With relatively few new buyers entering the market the number of homes sold reached a record low in 2010. However while most loan companies still reserve their best deals for people with a 10% or greater deposit there are signs of the constraints on lending easing. There are now a lot more 95% mortgage loan deals available with competitive rates. When you’re saving for your home there are many other costs that you need to consider along with the deposit. You will need to pay for stamp duty, solicitor’s costs, surveyor’s fees and also land registry expenses. You’ll also need to furnish your new house and pay for all of the bills. This is often quite an increase in your monthly budget if you have 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 state of the housing marketplace there is a large stock of new houses that developers are keen to sell. You can find some great deals on new properties with many developers reducing asking prices considerably. Many developers are also offering incentives like free white goods or help with finding a deposit. New build homes will also include a free 10 year warranty from the developer and are a lot cheaper to run and look after.
Shared Ownership
Shared ownership schemes are becoming increasingly popular for first-time buyers. With a shared ownership program you pay a mortgage on the share of the house you own and pay rent on the rest to a property association. With time you increase the amount of the property you own. There are lots of shared ownership schemes across the country and they can be the best way to get on the property ladder particularly for key workers such as nurses, teachers and police. Another option is to consider buying a home with a few of your friends. This may appear like an attractive choice but can have its downside. Ensure that you use a lawyer to draw up legally binding agreements. Find quality new homes Birmingham with What House?