WHEN IS THE BEST TIME TO BUY?
2010
These days this is a question that is coming up more and more frequently. The property market in the UK is currently experiencing a slump that it has not felt in decades. Due to this, a lot of people who may be looking for a new property are unsure whether now is the right time to buy.
The answer to this is that yes, now is the best time to buy a property, house prices are lower than they have been for years, meaning that a property that may have been £200,000 5 years ago, could now be on the market for £100,000. This is no exaggeration, house prices have dropped dramatically which allows people to snap up a bargain. It is also likely that by purchasing a house now you will avoid the position that many who purchased a few years ago are now in. You will not be in negative equity due to the fact that you’re purchasing a house when its price is low.
However, although house prices are low and interest rates on mortgages are low, it has now become a lot more difficult to get a mortgage. Banks and building societies have become more stringent in who they lend to and at what rates due to the economic downturn. This means that you will now have to prove, with regard to your normal spending patterns that you can afford the monthly repayments on a mortgage as well as having a good credit report.