Is Now The Right Time to Buy a Home?
Everything You Need to Know About Buying a Property During The Financial Crysis
Let’s face it, there is a lot of doom and gloom on the news. Right now, we’re being threatened with a recession, energy prices are rising, and you need a mortgage just to fill your car with petrol. With so much happening in the economy, many people are questioning whether now is the right time to buy their new home.
As estate agents, you might think we’re biased, but we genuinely care about the wellfare of our community. So, in our opinion, is now the right time to buy? We’ll let you form your own opinion, but this article will give you everything you need to make an informed decision.
Are Property Prices Too High to Buy?
Many people are waiting for the market to drop before they make their big purchase. Although this is understandable, these same people have now been waiting close to two years. The truth is, no one knows if or when the market will drop, so the waiting tactic might leave you waiting on your dream home for longer than you’d think.
However, no one wants to buy their home one month just to find that they could have gotten it for £30,000 cheaper the next! But, is this likely to happen? Property values have proven to rise and fall in a cycle, and the cycle has shown to last around 15 years. In essence, house prices rise over 15 years before taking a drastic drop during a recession period. Because house prices are as high as they are now, people think the drop period is looming.
However, even though prices drop, they rarely go as low as they were at the start of the cycle. Plus, in another 5 years, they’re just going to go back to what they were anyway. In essence, if you’re looking to buy a home to live in for 5-10 years, then you’re not really saving or losing any money, as it will all even out in the end.
Has the Financial Crysis Made it Harder to Get a Mortgage?
With the cost of living rising, it is understandable that people are panicking about their ability to borrow. But, there is some good news. Due to recent changes in mortgage ‘stress checks’, getting finance on your new home is now much easier.
In short, there were some old rules in place around mortgages where lenders added a hypothetical 3% to monthly repayments to analyse whether you could repay your mortgage if another crash was to happen like in 2008. Because this stress test has been removed, homebuyers potentially have access to higher forms of lending and better rates.
Your Best Interests at Heart
Whether or not now is the right time to buy is a personal choice. Make sure that you don’t spend every penny you have on a deposit, and don’t get a mortgage with high monthly repayments that you can only just afford.
Our team have your best interests at heart, so we’ll help you to find a property within your budget. If you’re looking for a new house to call home, then view our full range of listings by clicking here.
Alternatively, if you’re looking to sell your home, then contact the team today and book your free valuation by clicking here.