publication date: Sep 20, 2010
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author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
First Time Buyer Home
For first time buyers, it's difficult to know whether to purchase a home or not in the current market conditions. The risk for first time buyers is that if they purchase now and prices fall, they may go into negative equity, if they don’t buy now and prices increase, they may get priced out of the market.
So what should first time buyers consider when working out the right time to buy a home? Independent property consultant Kate Faulkner offers expert advice to first time buyers so they know what to do.
The main thing to work out is what’s happening in your local market. Is it falling, rising or stable? DO NOT listen and base your decision making on what you hear in the media as typically they quote ‘national’ stats and these can be completely different to what’s happening in your local area.
The next thing to consider is if the property that you are looking for is actually within your budget. To do this, before you actually start looking seriously, it’s important to find one or two properties that you like and take them to a mortgage lender. You will need your wage slips with you too, and this way you can get an idea of whether you can borrow enough money.
Once you know if you can get the mortgage you need, then its worth just adding up how much it will cost you to move and what deposit you will need. As a first time buyer, under £250,000 until March 2012 you don’t need to pay any stamp duty.
Finally, you need to think about how long you want to buy for. If you are looking to buy for a few years and then sell up and move on, it is better to wait until the market is rising consistently, even if you pay a bit more for the home.
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