If you’re interested in property or becoming a landlord one day, you might be wondering whether now is a good time to buy. Or whether you should wait it out.
Although house prices are falling amid a cost of living crisis, that doesn’t necessarily mean it’s the ideal time to buy.
Here’s all you need to know about the current housing market.
Setting the scene: what’s happening to house prices?
Although house prices have been exponentially rising in the last couple of years, we’re starting to see the market slow. This is likely because mortgage rates have risen, squeezing people’s incomes.
With this in mind, the demand to move house has reduced, hence reducing house prices.
Will house prices continue to fall?
They probably will, yes. With interest rates increasing and inflation rising, we’re expecting a house price slump over the next year. But that brings opportunities for landlords and letting agents. With mortgage rates too high and many people struggling to get their mortgages approved, this means we’re likely to experience a boom in the rental market.
Making now the ideal time to benefit from the current housing market.
How to benefit from the housing market
If you’ve decided to buy, there are a few things you can do to make the most of the current market conditions.
- Use cash if you can
With mortgage rates at an all-time high, if you’re able to use cash to purchase your property, it’s best to. If buy-to-let mortgages are the only option, it’s advisable to wait. That way, once the price of the house has fallen, you’ll be able to get a smaller mortgage, therefore reducing your repayments.
If you buy in a buoyant area with high rental demand, you can be sure to make back the money from high-interest rates.
- Negotiate
Just like you would for your home, you should negotiate. Whether that’s negotiating the price of the property when you put in an offer or negotiating a better interest rate on the mortgage. It helps to be brave.
If you’re looking for the best deal on a buy-to-let mortgage, you might want to enlist the help of a mortgage broker to help you get the best deal.
- Do your research
We can’t emphasise this enough! Landlords are subject to plenty of possible fees and taxes. To make sure you’re able to afford your repayments, make sure to meticulously research your investment and the consequences of such a big decision.
Final thoughts…
Rent is at an all-time high, which means it’s a great time to expand your property portfolio or dabble in buy to lets. If you want our advice it’s this: why wait?
