How can you get your hands on a cheaper property?
The value of properties across the UK has been falling over the past year, and it is thought that house prices now are around 13% lower than they were at their peak, which was last October. However, despite the house prices falls the ten year housing boom over the past decade means that the cost of purchasing a property in the UK can still be very high. Many would be buyers are still nervous about whether or not to take the plunge and buy a property due to fears over continuing house price falls, which could leave many facing negative equity.
The current situation in the housing and mortgages markets has made it increasingly important for potential buyers to try and get the best deal and save as much money as possible when buying a house, in particular to weather the effects of falling house prices, which could otherwise lead to negative equity levels.
There are a number of tips that can help you to get the best deal on buying a property, and this includes:
Keep your eye out for reduced prices: In the current financial climate many homeowners are finding it difficult to sell their homes, with estate agents reporting the lowest sales figures in decades. Some homeowners are therefore reducing the asking prices on their homes in order to try and speed up the sale of the home, and this is where the potential buyer can make savings. Use the Internet and even the newspaper and estate agents windows to look out for reduced prices on properties.
Brush up on your negotiating skills: With many homeowners desperate to sell their homes in what has become a difficult climate in the housing sector you will find that many are more open to negotiating house prices. Make sure that you always try and negotiate the price of the property and try and knock down the asking prices so that you are not paying as much for the property, giving you more scope to weather further house price falls.
Bag a bargain at auction: One of the ways in which you could save money on the cost of purchasing a property is by buying at auction, and you can get some very good deals at auctions. Some auctions are now forcing vendors to place lower reserve prices on properties or refusing to sell them at auction, so you could get a real bargain by opting for auction.
Try and get a cheaper property and avoid stamp duty: In a recent bid to breathe life into the property markets the government has increased the stamp duty exemption level from £125,000 to £175,000. If you hunt for properties in slightly cheaper areas you may be able to find a property that falls within that threshold, and you can save yourself up to £1750 on your property purchase, which all helps towards getting a good deal on your property purchase.
Wait it out: if you are not in any desperate hurry to move you may want to wait it out a little longer, as many experts predict that prices will continue to fall next year before stabilising or starting to go back up again. Therefore, if you wait another six or nine months you may find that you can get an even better deal on the price of a home.
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