It would seem though that almost everyone feels that we have reached the top of the market. There are definitely many overpriced properties in estate agents’ windows and it will still take some time for over ambitious vendors to stomach the idea of making a substantial price reduction – unfortunately though, it seems that their time will come.
For buy-to-let investors and first time buyers now is a particularly testing time. The knock on effects of the Northern Rock drama means that these segments of the property market are to be hit with higher lending charges.
This coupled with a proliferation of overpriced properties on estate agents books means that potential home movers would probably be wise to play the waiting game for the next 6 months or so.
If you’re in a position to sit it out, give the market some time to cool and a little time for the real scale of the US Credit Crunch Crisis to be assessed. You may well benefit from lower house prices and greater levels of affordability towards the middle of 2008.
Of course, not everyone can be so flexible and because of changing work commitments, divorce or an increase in one’s brood, you may find your need to move home is critical.
As we’ve discussed, now is not the best time but at the end of the day you’re buying a home, not an investment. Your primary need is to put a roof over your head, not to make an immediate return on your money.
If the worst happens and prices do crash, you can take heart knowing that it won’t last forever. The market always bounces back. For example, the crash we saw in the 90’s only lasted 4 years and as long as you didn’t have to move during that period, homeowners were largely unaffected.
The key point for anyone thinking of buying a property over the next year is to pay close attention to his or her financial health. Don’t overstretch yourself, I can’t stress that enough.
Really put the effort in to shopping around for the best mortgage, resist the temptations of easy credit from cards and personal loans and get the largest deposit together possible.
Also, make sure you buy a property that really fits your needs. One you’ll be able to call home for a long time to come. That way you’ll be able to weather whatever the market throws at you.
Finally, never forget the old property mantra of “location, location, location” because the one thing you can rely on in a market downturn is that a good location with always retain more value (for longer) than a bad one.
Moving Home? Channel 4 Needs You!
An award-winning team is producing a documentary film about selling a family-sized house in London, to be broadcast in 2008 as part of Channel 4’s flagship documentary strand, Cutting Edge.
The one-hour documentary will explore the property market in microcosm by looking at the sale of a single-family home.
The producers, at independent production company “Betty”, would like speak to people who are selling or thinking of selling the sort family home that is likely to cause a buzz on the market. They are looking to speak to people in line with their research.
If you would like to find out more, in confidence, please contact Nonie Creagh-Brown on:
Email: nonie.creagh-brown@betty.co.uk
Telephone: 020 7907 0894