Whilst sitting around saving for a deposit doesn't have quite the buzz of buying, there are rewards. The credit crunch means savers can earn the highest rates seen for the past seven years. Andrew Hagger, of Moneyfacts.co.uk, says, 'If house prices were to fall by 15 per cent in the next 18 months - which is conservative compared with some estimates - then those who are itching to get their foot on the housing ladder could benefit from the double whammy of very high savings rates and the falling cost of that elusive first property.'
Set up a standing order to transfer money into a high interest savings account every month. Also, benefit from tax-free interest on up to £3,600 a year using a cash individual savings account (ISA).
Housing market pundits may not always agree, but most conclude that house prices will fall somewhat in many regions over the course of 2008. If you’ve got finances in place, you are in a strong position to take advantage of this. The sluggish market means there will be sellers out there desperate to sell.
'A lot of first time buyers make the mistake of thinking that renting is more affordable than buying, but it's worth remembering that when you’re paying a mortgage you're paying for something that you own,' says Fraser Thomson, brand director for first time buyer group, G2.
'If you need somewhere to live, buy if you possibly can: renting is still expensive and dead money. Buying is a long term asset and investment,' says Lucy Chitty, director of a housing government group, Presentation.
Sign up to the local estate agents and register at the property portals such as the 4homes property search 4homes property search, Rightmove and Property Finder . Get great advice from How to Finance Your First Home, too. There are also some good websites full of information and advice for first time buyers.
Don’t let your relief at finding something you can actually afford, blind you to other issues. Choosing the right location is still as important as choosing the right property - and you should still be looking to spot an area on the up to make the most of your money. Familiarise yourself with your target area. Remember a number of factors will affect the desirability and therefore price of a property including transport links, schools, leisure facilities, shops and green space. Use www.upmystreet.com and www.neighbourhoodstatistics.co.uk for background research. At www.mouseprice.com you can check out what properties in the neighbourhood are selling for, too.
Compare current rates on loans, savings accounts, credit cards & mortgages with this handy tool
Thinking of buying or selling? Find out what's going to happen to house prices in the coming year
Our presenter could be popping round to your house for a consultation and a cuppa
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