Look For New Houses
The housing market in the UK has been in a state of turmoil for the last couple of years. However signs are beginning to appear that the market has arrived at its lowest point with many different industry experts forecasting small increases over the next 12 months. Information released by Zoopla in July reported that typical house prices rose by about £5,000 in 2011 with the average home in the united kingdom now costing £216,534. So if you are a first time buyer is it a good time to go into the market? Whilst prices have gone up slightly they are still less than they were at this point last year. Predictions for 2011 and 2012 vary considerably depending on where they come from. Overall the general consensus appears to be the market will see some small gains but will stay fairly stable. So if you are thinking about investing in a home I’d say do it now. Prices are not likely to drop and there are some excellent deals available on new homes. If you are thinking about purchasing your first home or flat here are some pointers: Mortgage and Other Expenses The need for big deposits has slowed down activity within the housing market considerably. With relatively few new buyers entering the market the number of homes sold reached a record low in 2010. However while most loan providers still reserve their best deals for people with a 10% or larger deposit there are signs of the restrictions on lending easing. More 95% deals have begun to appear on the market although the interest on them may be a little higher they’re still competitive. Of course there are a number of other things you need to save and plan for in addition to 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. Do not forget the cost of furnishing your house and the fact you will be paying the bills on your own. 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 purchase a used or new home? With the present state of the housing market there is a big stock of new houses that developers wish to sell. There are some excellent deals available on new homes with many developers lowering asking prices by as much as 10%. As well as reducing prices several developers are offering other incentives like help with finding a deposit, part exchange schemes and free white goods and appliances. Generally new properties are also cheaper to run and will come with a 10 year warranty. Shared Ownership Shared ownership programmes have become increasingly popular for first-time buyers. With a shared ownership program you pay a mortgage on the share of the property you own and pay rent on the rest to a housing association. Over time you increase the amount of the home you own. There are lots of shared ownership schemes across the country and they are often 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 house with a few of your close friends. This might appear like an attractive choice but can have its downside. Always use a solicitor to draw up agreements and ensure that everyone knows their obligations and responsibilities.
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