Good time to buy a property?
Who knows? …well, maybe me. Who listens to me? Not many people, in fact I get the most confusing looks from people, as though I have two heads.
It seems everyone is an expert and will tell you the same, “prices are dropping and it’s a terrible time to buy property”. Yet these same people were looking to buy a property in 2006 / 2007 at the height of the market and now they are telling me, after prices have dropped, not to buy. Hello? Why would you not buy when prices are LOWER ?!?!?!?!? (OK, they might go lower but they are still a lot lower than the peak).
So who is buying? I can tell you, property developers, serious buy to let investors, estate agents and a small minority of Joe public. Property experts know that there are very few buyers out there, yet properties still have to sell and are being picked up for a pinch. I have personally have seen properties sell for half the price that they were a year ago.
The media, who seem to be the new property experts that everyone is listening to, are telling me prices have dropped 15% and due to drop another 10%. Why is everyone is listening to the media?… The media, who obtain their information from surveys carried out by estate agents yet no one will listen to an estate agent.
I’m saying “A drop of 15% is only an average!” Some properties are dropping by much more than that. I can tell you now; this is one of the best times to buy!
As soon as the media say property prices are going up, you will have not only missed the boat, but will have lots more competition from other potential buyers.
With interest rates so low, as they are and going lower, now is a fantastic time to buy a property. Bid low, no other buyers around, everyone saying it’s a bad time to buy, but sellers still need to sell, so people that have to sell are taking the low offers.
Yet it appears that would-be buy to let landlords, usually first time landlords, would prefer to keep tens of thousands of pounds in the bank, receiving a very low rate of interest, than take advantage of bargain properties offering much higher rental returns on top of a very strong possibility of high capital growth over the next two to three years.
It’s like any market, what goes up, goes down and what goes down will go up.
The building of new homes has slowed, the population is growing. People have to live somewhere.
For me, it’s a shame, first time buyers are holding off and first time landlords are not taking advantage.
To find out what repossessions and discounted properties CLIFFTONS have available, call CLIFFTONS on…01202 789699.
Written by James Scollard, Proprietor
Posted: 27th November 2008