Predicting the way the UK home market will behave within the next 12 months is never easy. Over the last couple of years we have seen a number of false dawns and promises of recovery that never materialised. However there are now signs the market has reached its lowest level and could be on the way up again. Many parts of the country 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 hold out a little longer? Whilst there have been some increases prices are still less than they were at the same time last year. Predictions for 2011 and 2012 differ considerably according to where they come from. Overall the general consensus seems to be that the market will see some small increases but will stay fairly stable. So if you are a first time buyer now is a great time to start looking. The cost of property is unlikely to fall and while any increases may be small they will only add to the expense of buying a house. If you’re thinking about buying your first home in the near future here are a handful of quick tips to help you out. Mortgage and Other Expenses Saving a 10% or larger deposit can take years and is one reason for the recent lack of activity within the housing market. The times of lenders being willing to give 100% mortgages are gone. Nowadays most banks and building societies demand a 10% deposit to get the best deals. However some 95% home loan deals at competitive rates have started to appear for those with a good credit rating. A deposit is of course not all you need to save for when you’d like to buy a property. There is stamp duty to pay for on many homes, solicitor’s expenses and surveyor’s fees as well. Do not forget the cost of furnishing your house and the fact you will be paying the bills on your own. This can come as a shock if you have been living in a shared house or with parents. New or Used Home? With the housing industry still flat developers are eager to sell new build homes. If you shop around you can find some terrific deals on new build properties with many developers giving a range of incentives to encourage people to buy them. A new property will also be built to much better standards and come with a 10 year warranty. Whilst a used home may be slightly cheaper it’ll cost you more to maintain and heat. Shared Ownership Shared ownership programmes are becoming increasingly popular for first time buyers. You take out a home loan for the portion of the house you own and pay rent on the other portion to a housing association. Over time you increase the amount of the property you own. There are lots of shared ownership programmes across the country and they are often the best way to get on the property ladder especially for key workers such as nurses, teachers and police. Another option is to consider buying a home with some of your friends. This might appear like an attractive choice but can have its downside. Always use a lawyer to draw up agreements to make sure that everybody knows their obligations and responsibilities.
Find new homes Kent using What House?