The property market is currently on everyone’s lips with all the economic issues that are happening. With the dramatic fluctuations on the FTSE, the property market has obviously slowed down. People wait with baited breathe. Will prices rise or drop? What will happen to the bank rates and hence the changes to the amount we pay on our mortgages.
Rumour has it that things will settle in around a year. But then that is what it is… Rumour!
People see the current property market as a negative situation. However I feel that the way you see it is obviously very dependant on your own economic situation. In my case, the situation is actually a positive one as I am looking to buy a property but not sell. It gives me to opportunity to buy low and not have to sell low. It also means that as the property recovers, I can hopefully make a killing. However, it is all about perspective.
With increased mortgage rates, people may struggle to pay their mortgage and have to sell and perhaps downsize or rent. But as people are hesitant to buy because they hope the prices drop further or because they hope they will get more for their property, it means the market slows down. It means that selling quickly gets harder. People can use business services, where they can get cash for property instantaneously. Not an easy choice, but sometimes it works out being the lesser of two evils. It is better to sell at a lower rate quickly than to lose a house to repossession (and lose a lot of money).
Meanwhile, I shall be keeping my eye open for a good buy. With the market being what it is, I hope it means that I can get myself a good deal.
As I said… it is all about perspective!