Banks and building societies have effectively scrapped the traditional ‘ new homes premium ‘ in their mortgage valuations- that’s the extra price for a square foot of space that buyers were previously willing to pay on the assumption of no repair bills and lower energy bills.
Nobody doubts, either, that the building industry needs a massive boost, having scrapped tens of thousands of jobs. Sales of new homes might struggle to reach 75,000 in 2009, while starts may shrink as low as 60,000.
Many builders will only finish sites already started by making block sales to housing associations funded by Government money. A recent survey shows that nine out of ten people still believe buying a home is a sensible investment. There is an improvement in mortgage availability, prices have dropped, property is more affordable and builders have seen a steady but modest increase in sales over recent months.
The present concerns about the economic downturn and repossessions is understandable and buyers maybe cautious about buying a new home, but if you take everything into account, now is the right time to buy.
Here are five reasons why:
1. The selection of new homes available is fantastic. From detached homes, semi-detached homes, apartments, townhouses etc.
2. There has been a reduction in house prices. That is great news for all buyers, especially first-time buyers, who can reap the benefits of a depressed market and get onto the housing market ladder.
3. The interest rates are very low in Britain. For people having no problems getting a mortgage makes buying a new home a much more affordable option, especially for first-time buyers.
4. With rising energy costs, it’s good to know that new-built homes are more energy efficient than ever before.
5. Owning a new home is a great investment as regards personal wealth and financial security.
By: Gary Inskeep