I am wondering what stategy to employ in the future with regards to buying property. Is it better to rent for now? Will house prices drop? Will there be a recession or sorts in the next decade? Can house prices continue to increase and is the financial gain in selling completely relative? Advice and economic insight welcomed!!
2007-06-26 22:19:06 · 4 answers · asked by pezlo7 1 in Business & Finance ➔ Renting & Real Estate
I am in the same situation as you and i am waiting to see what happens - in the meantime i am renting. The reason for the sharp increase in house prices is due to the lack of homes. The Office of Fair Trading are now looking into this and have found that building companies are deliberately building short of their quota in order to hike prices up.
There had been a predicted price rise in the second half of 2007 of 2%, this has now been recalculated to a fall of 4%. There are bound to be repercussions of such price increases and in the next 5 years we will see many changes (an increase in new home builds, an increase in interest rates, an increase in utility bills ect).
Good luck.
2007-06-27 00:51:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Simple rule of thumb, property over time will ALWAYS increase in value, there may be troughs and peaks in the housing market but the trend is consistently upwards. Renting is paying someone elses mortgage for them a mortgage is your money invested in bricks and mortar. There is never a 'good' time to buy other than when you can first afford to. Even were the housing market to crash the day after you bought your property it is still yours the equity is an intangible thing until you actually sell the property. The only thing to bear in mind if possible is location, location, location.
2007-06-27 05:30:17 · answer #2 · answered by GreboGuru 2 · 1⤊ 1⤋
Also it depends on which part of the country you are looking at as there is a lot of re-generation going on in places like Liverpool and the north east so if you do some research on these places and get in early then you can make the decision whether to buy or rent.
2007-06-27 06:46:11 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Agreed ... buy as soon as you can afford it (try to avoid central London ..) .. think long term .. yes, your dream house may well be 20% cheaper in 5 years ... on the other hand it may be 20% more expensive and no longer within reach ..
2007-06-27 06:23:55 · answer #4 · answered by Steve B 7 · 0⤊ 1⤋