Oct
The housing industry in the united kingdom has been in a state of uncertainty for the last couple of years. However indicators are beginning to appear that the market has reached its lowest point with many experts predicting small increases over the next 12 months. The most recent data from the housing web site Zoopla showed that the cost of the average home in the UK increased by £5,000 in the six months to July. So if you are a first time buyer is it a good time to enter the market? Whilst prices have gone up slightly they are still lower than they were at this point last year. Predictions for 2011 and 2012 differ considerably according to where they come from. However most experts are of the opinion that the market will stay flat or see modest price rises. So if you’re thinking about investing in a home I’d say do it now. While prices may not rise much further they’re unlikely to drop and you can get some great deals from many property builders on new houses. If you’re thinking about purchasing your first home or flat here are some pointers:
Mortgage and Other Expenses
This is the greatest obstacle for many people and one reason why the market is so flat right now. The times of loan providers being prepared to give 100% home loans have ended. These days most banks and building societies want a 10% deposit to obtain the best deals. However more 95% deals have started to appear during the last few months in particular for people with excellent credit ratings .. When you are saving for your house there are lots of other costs that you need to think about along with the deposit. On some properties depending on price you’ll have to pay stamp duty . You will also need to budget for solicitor and surveyor’s expenses and also land registry fees. You’ll also have to furnish your new house and pay for all of the bills. 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? With the low level of activity in the house market there is a large stock of unsold new homes readily available. Many developers are offering some great deals and incentives on the homes they have to help them sell quicker which can add up to 10% from the asking price. New homes today are built to fantastic standards and will come witha 10 year warranty for total peace of mind. Although a second hand home might be slightly cheaper it’ll cost you more to take care of and heat.
Shared Ownership
The popularity of shared ownership plans has grown considerably in recent times. They enable people to purchase a share in a house 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 is the owner of the other share. You can increase the share of the home you own over time so that ultimately you can own 100% of it. Joininga shared ownership plan means that you do not have to save for years to get a large deposit and you can get on the property ladder a lot faster. Another option you could consider is purchasing a house with a group of your friends. While this can seem like a good idea it can be fraught with pitfalls for the unwary. Ensure that you use a solicitor to draw up legally binding contracts. Find the best new homes Edinburgh with What House?