When to Sell and when to Buy!
This seems like a simple enough question and the answer itself is just as easy once you break down buyers and sellers into three groups.
Nothing to sell.
There are two main thins to keep in mind when buying a property. The prices of property and the current interest rates for mortgages (unless you are lucky enough to have the cash). The media does a good job of keeping us up to date with house prices and when the prices are at their lowest however if you would like to look for yourself click here to compare prices in your area over a set period of time. It is likely that interest rates will drop along with the house prices, however to be on the safe side make sure you visit you IFA. You should also be looking for the right property for you. If you are not sure which end of a hammer to use then make sure that you buy a house with no work needed as the cost of having someone undertake the work will add no more than it will add to the property value. Alternatively if you are a keen DIY enthusiast then look for a property that needs work. Don’t trust what your Agent tells you, do your own research and compare properties in the area to see what similar properties in better condition have achieved. Once you see the difference in price you know your budget to make the work worth while.
Selling, no forward chain.
This is the nicest position to be in but sometimes not the easiest. Sometimes the circumstances that have lead to a property being chain free mean that there are issues to be dealt with before the property can be sold. Make sure that all agreements are in place and that one person is responsible for all parties involved. Now it about selling the property. The first thing to ask is “do we need to sell now?” Well if you do not need to sell then check the current house prices if the Market has recently crashed then hold on to the property. You may have options to rent the property until the market recovers. Whatever the situation try what you can to hold on the property until prices are high and it is a sellers market.
Buying and selling.
This is an interesting subject. If you are Mr and Mrs Normal and you are looking to upsize or downsize then the market trends do not effect you. I have been told over the years by many homeowners that wish to move that they do not want to market yet as their property will be worth more in a few years….Well so will the property that you move to! I know this sounds simple enough but for those of you out there who do not understand this please let me explain. Imagine you live on a street where your house doesn’t have a view but the ones on the other side do. You want to move to a house over the other side of the road. Your house is valued at £200,000 and theirs at £225,000. If your house is then worth £225,000 in 2 years that doesn’t mean you could buy one opposite as theirs will now be worth around £255,000 if their property increased at the same rate. So by waiting you cost yourself money. So the trick with moving while buying and selling is to keep your eyes on the mortgage rates.
Remember moving home is one of the biggest decisions you will ever make. Be sure that you have looked into every possible avenue. Before you do anything speak with your IFA for guidance on what is changing in the financial market and how it will effect you.
Happy house hunting.