Whatever your situation, how will the current outlook affect your decisions?
First Time Buyers: Buy Or Rent?
If you are buying and staying in a home for five or more years, go for it, as long as it’s the property you want and you can afford the mortgage. Prepare for disasters such as losing your job or becoming sick through insurance and having some savings put by, just in case!
Look out for specialist buying and selling schemes, such as: HomeBuy Direct; Open HomeBuy; and other low cost home ownership schemes.
If you are buying for the first time and are likely to move within five years, then consider renting for a little while longer, at least until we see unemployment bottoming out and 90% mortgages coming back in. Bear in mind that the Rental Market is typically in your favour, as rents are still low at the moment, so secure a good rental deal and save and save and save for a deposit!
Currently, rental prices are really low and this is only likely to continue until the autumn, so yes if you want to rent, now’s a good time to tie down a good property at a good price. However, if you are planning to buy in the next few years and can save a bigger deposit by staying at home, it’s worthwhile being nice to Mum and Dad and saving like mad so you can buy before property prices start rising again.
As with first time buyers, if you are likely to stay in the property for a long time and your job is as secure as it could be, trading up over the next six months is a great idea. You will have to price your own property fairly, but once you have an offer, you are likely to save more on the property you are buying. This is particularly the case at different stamp duty thresholds, such as properties worth around £200,000, which can, at the moment, be picked up for £175,000 so you don’t pay ANY stamp duty. It’s the same for properties around £250,000 and £500,000.
Ideally no, you won’t get the best deal, so if you want to trade down, you need to think about two things. Firstly, if you bought the property more than five years ago, remember you’ve probably still made a profit, so selling your home now just means you’ve made less of a profit that you would have done if you sold a year or two ago. Secondly if you need to trade down due to a divorce, or loss of a loved one and can afford to do it, then you just need to weigh up which is more important/feasible, starting your new life or making money on a property?
Many property investors are buying at the moment. HOWEVER, be warned, not every property will increase in capital growth over the coming years and not every property will attract tenants all year round. You also need to make sure you buy the property at a discount, just in case there are further falls.
Buying Property: advice, info and the latest news
Selling Your Home: how to, costs, advice and information
House Prices: the latest news
Housing Market News & Views: the very latest on what's happening
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