Collaborative Post
Right now, if you are thinking about buying a home, you have a lot to consider. There are so many variables to bear in mind, and if you are considering buying a house anytime soon, what are the main things to think about before you dive in?
Are House Prices Going to Fall?
The fact is that while house prices are going up, there’s a lot of things that could cause house prices to fall. The Stamp Duty holiday has finished, so fewer people are rushing to purchase. But there is also the fact that we haven’t seen the full effects of the furlough scheme that came to an end in September. If many people sell their homes because they lose their jobs, this means there will be a big increase of houses on the market, resulting in house prices falling. This means that a lot of people could benefit if they are looking for homes. Because there’s a variety of mortgages coming back on the market, including bad credit mortgages, it is certainly worth keeping an eye out on the market to see if the full effects of the furlough scheme coming to an end causes more houses to go on the market.
Photo by todd kent on Unsplash
Is Now a Good Time to Buy a Home?
The fact is that houses are more expensive than they were a year ago, and while mortgage rates are still low, any rising rates would mean it is harder to find a cheaper mortgage deal, and it is more expensive to borrow. But it depends on the angle you are viewing it. If you are currently renting, a mortgage will still be cheaper than rent in most places. There’s been a lot of increase in rental properties and the prices have gone up with it. And a lot of people are trying to get onto the property ladder so they can save on their rent. But in some places, it is still cheaper to rent than it is to buy a home. And of course, there are some benefits to renting a property over owning one, including maintenance costs. However, it depends on how much of a deposit you have. If you have a typical 10% deposit, at the moment it is slightly cheaper in rent. But this could soon change.
Should People Sit Tight?
If you are desperate for a house, the best thing you can do is to find your forever home or, at the very least, find somewhere that you can stay for a few years. If you are determined to buy, the best thing you can do is wait for a better time. March is usually a good time to buy a house as people are very keen to complete sales before the summer holidays. If you are starting out your house hunting journey, it’s important to be aware that house hunting can be very stressful at the best of times. It certainly seems that the market is in a very strange place, but this has happened before, and after the credit crunch, house prices did go down.