While economists continue to assert that Britain is standing on the edge of a triple dip recession, its housing market is showing remarkable signs of life. This reflects the current contradiction that afflicts the economic condition, with the value of property soaring while numerous industries struggle with sluggish growth and uncertainty.
For first time buyers looking to make their move into the market, however, the next few months may provide the very best opportunity to strike gold. With prices set to rise steadily throughout the year, an overly cautious approach could individuals priced out of the market come the autumn and wiinter months.
3 Top Tips for First Time Buyers
Bearing this point in mind, what practical steps can first time buyers take to make their first move onto the property ladder? Consider the following: -
Seek Help and Practical Assistance from your Parents
While purchasing a home may be the ultimate display of independence for young adults, this does not mean that they cannot solicit help from their parents at the beginning of their journey. If you are struggling to qualify for a suitable mortgage in the current climate, for example, then you could ask your parents to act as guarantors on your behalf. So long as they are willing and have sufficient income to theoretically cover the cost of your proposed mortgage repayments, then they can make the difference between a failed application and a successful one.
Aim for the Lower End of your Mortgage Allowance
When it comes to obtaining a mortgage, there is a tendency to purchase a home towards the higher end of your allowance. If a broker has suggested that you can obtain a mortgage of up to £130,000, for example, this does not mean that you need to look for properties at or around this price point. By targeting slightly lower price properties that are also within your budget, you can purchase a desirable home while easing the burden of monthly repayments. The key is to compromise between location and cost, as this allows you to strike an ideal and rewarding balance.
Create a Comprehensive Budget for all Works
When looking to purchase a house, it is important to create a comprehensive budget that accounts for all potential eventualities. The cost of mortgage repayments and stamp duty are just two of many considerations, as the property itself may also require work to ensure that it is in a suitable condition. The cost of a structural surveyor is also one that catches most inexperienced buyers off guard, and yet this is crucial to guaranteeing the integrity of your overall investment. Once you have selected a house, you should take the time to create a list of potential costs and calculate your budget in line with precise requirements.
While buying your first home can be a daunting and costly experience, it is an exercise that needs to be conducted with precise timing. Entering the market at the right time enables you to obtain the bets possible financial deal, while it also increases your chances of finding your dream home.