First Time Buyer
Getting a new house is amongst the most stressful experiences in the average person’s lifetime. Getting on the property ladder is a very serious undertaking but is also a valuable investment in the future. Those wishing to do so will usually need some kind of support, especially with fewer people buying and moving house at present. Between mortgage values, less long-term employment in the job market and large deposits, resiential house buying has fallen dramatically over recent times.
Here are some things to think about:
- Getting together and putting down a deposit for a percentage of a home’s value.
- Dealing with property seller’s as well as estate agents.
- Being aware of any charitable or government schemes that may help.
- Being sure of the area, commodities and other aspects of a property before moving in.
- Checking to see what other valuable things there are in the area you move to.
What’s changed for first-time buyers?
The 90s were considered one of the best times to buy houses for a first-time buyer. There were fewer distractions to spend money on in day-to-day life and more stable couples to guarantee that mortgages could be paid. But were things as good as they seemed? Often, fixed-rate mortgages were inaccessible, and the kinds of rates you may see today didn’t exist. Through mid-1990, interest rates hit an all-time high of 15.4%. Between 1990 and 1995, around 350,000 houses were repossessed, a figure that dwarfs the repossessions during the well-known housing recessions of 2008. In fact, with more lenders around now, more flexible repayment options, you could say that the talk of the perils of getting a mortgage in modern day are exaggerated.
What do I need to consider?
It would be wise to seek advice from friends and family or other responsible bodies before first buying a house. Often there will be things that you haven’t thought of or wouldn’t even know to be an issue. Those that you know and trust may be able to tell you about the things they hadn’t thought of themselves to avoid you making the same mistake. As it is one of the most important decision of your life, take as much time as you need before committing yourself to one location. Whilst it’s far from impossible to escape from a situation where you have purchased a mortgage if things go wrong, it’s certainly not easy so whatever you can do to avoid it happening in the first place is best.
In most cases, those who are first time buyers are buying with others. Whilst this is a wise move because of the ability to spread costs, more parties means more individuals to satisfy. Tensions can also flare up and in bad cases, living with people can become a difficult affair. All the more reason that you should be prepared in case things go wrong, or just to change plans if necessary.
You’re buying your first home. It’s a very exciting time. It’s also a worrying time. You don’t want to get anything wrong, you want to get the perfect house for your budget in the perfect location. Use every resource at your disposal to make the most informed choice as possible. Speak to people you know, find out about schemes, contact different lenders and you’ll end up with a deal worth living in, and maybe starting a family in too!