Purchasing your first property is a huge commitment that can take years to plan and save for. So, when you do choose to take the first steps towards securing your first home, it is vital that you get the timing right to maximise what you can get for your money, streamline the process, and reduce the potential stress that comes with moving. That’s why Centrick has summarized the four points you ought to consider before determining whether now is the right time to buy your first property:
Interest rates are a bone of contention for first time buyers – they bode well when it comes to saving money for your deposit, but can be detrimental to your long-term mortgage repayment plan. Thankfully, many lenders offer special deals on first time buyer mortgages that make getting on the housing ladder more accessible to new purchasers. This is particularly valuable to first time buyers who may have a lower deposit and larger mortgage, which makes securing the best possible mortgage arrangement even more important.
It is imperative that you talk to a qualified professional about which type of mortgage to use. If you don’t consult an expert, you may risk opting for a fixed rate mortgage when interest rates are exceptionally high rather than waiting for them to potentially reduce, or you could risk opting for a tracker mortgage when the base rate is predicted to soar in the coming months. You can find out more about the implications of rising interest rates on your property purchase in our blog.
Understanding local property prices is vital when determining whether now is the right time to buy your first property. The property market is ever-changing, and experiences peaks and troughs which should inform your timing when committing to a purchase. For example, spring is generally regarded as the most lucrative time of year for property sales, with Rightmove reporting that March saw the average house price increase by over £5,000. So, if you are not in a hurry to secure your first home, it may be worth waiting until ‘slower’ months where competition for houses is less severe, and house prices are marginally more affordable.
We recommend consulting with a local residential property expert to determine when the best time is for you to purchase your first property. They will understand the dynamics of your local property market and should be able to provide accurate information regarding the best time to start your property journey to get the most for your money.
Understanding the level of buyer demand in your area of interest can help you assess where you can get the most for your money when it comes to purchasing your first home. If more buyers are searching for properties in your chosen area, this means that buyer demand is high, which can consequently result in rising property prices due to steep competition and a lack of units on the market as properties get snapped up quickly. Alternatively, regions with less buyer demand will likely have more properties available to purchase and for a lower cost – these units may be better for first time buyers who want to get the most for their money in their first home. Tools such as PropCast can help you pinpoint which areas may be best for you to focus your property search. Similarly, this tool can inform you as to whether the market in your desired postcode area is ‘heating up’ or ‘cooling down’, which can inform whether you wait to pursue your first property purchase or act now to secure your first home.
First time buyer schemes can be exceptionally helpful to those looking to get their first foot on the housing ladder. However, many of these schemes are time sensitive, which may add a sense of urgency to your property purchase. The Help To Buy equity loan scheme concluded in October 2022, leaving many prospective home owners in a rush to secure homes and start their applications, even if they weren’t necessarily ready to fully commit to home ownership. Similarly with existing schemes such as the First Homes Scheme and Shared Ownership Scheme, there may be pressure on first time buyers to invest in a scheme-backed purchase even if they are not quite ready, with the rush to secure a more affordable home in such a competitive market putting unnecessary pressure on buyers.
Although it’s always a good idea to do your research before buying your first home, timing the property market is always a challenge and there will likely never be a perfect time to buy. Make sure you talk to the experts and take your time in finding a property that’s right for you, and most of all – enjoy the journey!
As your partner in property, Centrick can help you make your first property purchase a breeze. Our team of experts understand the local Birmingham, Solihull and Nottingham property markets in great depth, allowing us to provide you with the most accurate advice on which areas are best for your first property purchase and when is the best time to secure your first home. We also have a range of properties for sale to suit your needs, whether you’re searching for a stylish new build or a characterful resale property. For more tailored advice on whether now is the right time to buy your first home, simply fill out the form below and a member of our team will be in touch:
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