The world of the first-time house buyer is a very precarious one right now. It was a seller’s market up until a few months ago, but now it seems that the tide is turning, which could mean that first-time buyers are potentially going to clean up in 2023, so let’s show you a few things to consider if you are looking to buy a property.
Do Not Just Look at the Costs
The biggest issue right now is the rising interest rates, resulting in many mortgage advisors saying that you need to “hang tight” and so many mortgage providers pulling their products because it is not sustainable. The cost of the property is one thing, but even a home that is hovering around £160,000 is going to have monthly mortgage repayments of around £1,000 right now!
The best thing for any first-time buyer to do is, unfortunately, try and save a bigger deposit so it lowers their monthly repayments. This means that if you haven’t already got an ISA in place, get one, rather than just having money in your bank account. An ISA is an amazing tool with the best additional interest. If you are under the age of 40, you need an ISA, not just for your mortgage down payment, but you can use it for retirement as well.
Will the Housing Market Crash in 2023?
The fact is that there are so many different external components at play here. The market is slowing down, but the property market has been very resilient, which means there will be a discrepancy in supply and demand that will eventually level out. The rising interest rates are not making it appealing right now, but rising property prices mean that if you plan on selling, you will have higher profits later on.
If you’re a first-time buyer looking to make your first property purchase or you are looking for your forever home, it is a good idea to wait until the spring for the house prices to fall, so you won’t get a mortgage over the odds.
As interest rates will come down, and generally you should wait 180 days after a budget Is announced to see the full fallout, and the fact that people will be desperate to sell, you will see both of these even out. Hang tight and save as much money as possible.
The reality is that it’s not just the UK housing market experiencing issues, the mortgage rates in places like America are going up as well. This means that, for first-time buyers, the reality is that everything is unsustainable at the moment. You will have to bide your time right now because you will see the fallout of the min-budget and you will also start to see more people selling up, especially landlords looking to get rid of properties. Buying a house in 2023 is far different than buying a house in 2013, but now is such a precarious time, so just hang tight.