subject: Buying A Home In This Economy [print this page] The rough total of a yearly household income across the United Kingdom is 20,112 pounds. According to The Telegraph, 1000 pounds of that is set to go on energy bills alone. Around 2400 pounds is spent yearly on groceries for two people, and 145.50 pounds for your television licence. This leaves a rough average of 16567 pounds, without taking in to account rent, clothing, repairs on homes that may need doing, car tax, petrol, or public transport costs, and so on.
The average price of a home in the UK peaked in late 2007, then plunged rapidly in 2008 before starting to recover in 2009 and then reaching a plateau in 2010 and 2011. Property values have failed to see an increase what with the Eurozone crisis, and the recession still in play. 2012 is seeing property values decrease further still, which means that more homeowners are reluctant to sell as they will get so little money.
This means that saving money to buy a first house can be a long and troublesome affair. The average full value for a 2 bedroomed home is 230,000 pounds (398,476 pounds in London.) This means that saving up for a home based on the average costs and the average disposable income amount, it would take up to 13 years to save for a new home (24 if you wish to buy a home in London.)
Those 13 years is to save up for the shell of the home alone, without purchasing the furnishings and other necessities to go in to it. Furnishing a home can cost anywhere between 1000 pounds and 6000 pounds, depending on where things are being purchased from, and just how much is needed to fully furnish the home. this can add an additional 6 months to a year to save up for a home, making a London home only purchasable (without a loan) in 25 years.
Many banks are unwilling to give out loans, with the current economic situation. This means that decreasing the time needed for a home is drastically hard to do. However, with a good credit score, the banks may become a lot more lenient in loaning. This is because they will see that you are profitable to them, and with the recession, it is good for the bank to be gaining profit where they can.
Having a good credit score, mostly, means that there are no debts, no loans needing to be paid off, credit cards are cleared on time, and that money has been managed wisely. Taking out a mobile phone contract, or getting a landline with a monthly payment, is a good way to have a recent account of how your credit score will be lifted by the bank is loaning.
Once the money for a home has been gotten, it is time to find and purchase the house. This is all down to the buyer, and their preferences. The perfect home has been found, and it is time to make it a real home with furnishings and decorating. This can become a costly thing. However, there are ways of doing this, without needing a second loan, or struggling into more debts.
Many wholesalers stock a wide range of things that are excellent for furnishing a home with, and they are all available at low prices. To furnish a two bedroom home with these wholesalers means that you can then take your average price down to the lower end of 1000 pounds.
Choosing to purchase home furnishings from a wholesaler that is then offering affordable and discounted prices on their products can greatly increase the chances of being able to find all things that are needed. There are many different ways to budget on decorating and furnishing a home, the most resourceful people will find themselves spending very little money.
Once a home is purchased, decorated, and furnished, there is nothing left to worry about. However, it is always worth knowing how the current state of the economy is running, and the worth of the home. Knowing this can give a gauge of how it can be improved, and how much can be invested in the home.
Many people have their money invested in their homes, as this is a solid way to keep it grounded. For those who are looking to invest in their homes and come out with profit, it is wise to keep money invested to a minimum. Doing this is easy with smart thinking and clever budgeting on the behalf of the home buyer, and this will pay off in the long run through security.
