viral-animations.com

Forecasting which way the united kingdom property market is going is not easy. Over the last couple of years there have been a number of false dawns and promises of recovery that never materialised. However it finally looks like the recovery is on the way for most parts of the country. Most regions have seen small but significant price rises this year with £5,000 being added to the value of the average property.

So is now a good time to buy if you are a first time buyer? While prices are on their way up once again they are still at lower levels than July last year. Forecasts for 2011 and 2012 vary considerably depending on where they come from. Overall the general consensus seems to be that the market will see some small gains but will stay fairly stable. So if you’re thinking of investing in a home I would say do it now. The cost of housing is unlikely to fall and while any increases might be small they will only add to the expense of buying a home.

If you are thinking about purchasing your first home or flat here are some tips:

Mortgage and Other Expenses

The demand for large deposits by most lenders is among the principal reasons for the lack of activity in the market. With a lack of new buyers entering the market it’s taking considerably longer for houses to sell. In fact the number of sales in 2010 reached an all time low. However whilst 10% home loan deals are still the norm there are signs that lenders are easing their restrictions on lending slightly. There are now a lot more 95% mortgage deals available with competitive interest rates.

A deposit is of course not all that you need to save for when you want to buy a home. On some homes depending on price you will have to pay stamp duty . You must also plan for solicitor and surveyor’s expenses and also land registry fees. Don’t forget the cost of furnishing your home and the fact you will be paying the bills by yourself. This can be quite an increase in your monthly budget if you have been living with your parents or in shared accommodation.

New or Used Home?

With the low activity level in the house market there is a large stock of unsold new homes available. You can get some terrific discounts and incentives that can help you save up to 10% from the asking price. A new home will also be built to better standards and come with a 10 year warranty. Although a used home might be slightly cheaper it’ll cost you more to take care of and heat.

Shared Ownership

Shared ownership schemes have become a lot more common in recent years. They allow people to purchase a share in a property which they otherwise would not be able to afford . A mortgage is paid on the portion of the property you own and rent to a housing association that owns the other share. You are able to increase the share of the home you own with time so that eventually you are able to own 100% of it.

Another option you could look at is buying a house with a group of your friends. This may seem like an attractive option but can have its downside. Ensure that you use a solicitor to draw up legally binding agreements. For the biggest selection of new homes for sale visit WhatHouse?