We’re understandably obsessed with owning a home in our society, but is now the right time to dip your toe into the property market?
The Price Rises Are Behind Us
2014 was a year of never ending price rises in the housing market, or so it seemed. But, luckily, those soaring prices seem to be a thing of the past, for the time being at least. This means now could be a good time to buy a family for your family. But it doesn’t necessarily mean that now is a good time to investment if you’re looking for quick profits.
The fall in prices in a lot of areas will be welcomed by a lot of people, but not those looking to buy and then sell. However, it could be a good time to buy if you’re a landlord. The rental market is booming for landlords, and your rental income should increase if you put a new property on the market right now.
Mortgages Remain Unaffordable Though
The fact that house prices are no longer rocketing is, unfortunately, offset by the fact that mortgages aren’t becoming any more affordable. This means that, for a lot of people, is as unaffordable now as it was last year at the peak of the rising house prices. Mortgage interest rates are rising, and there’s no sign on the horizon that it will become easier to get a mortgage anytime soon.
So, it’s a case of good news and bad news arriving at the same time. Things could be worse, but they couldn’t certainly be better too, especially for people looking to get onto the property ladder for the first time.
Do Your Research Beforehand
There is no blanket answer to whether now is a good or bad time to buy a home, and that’s largely because prices and value differ depending on location. You should do as much research on your chosen location as possible before you buy. Prices will be higher in the major cities right now.
Having said that, smaller cities are looking like good investment locations at the moment. Being on the lookout for emerging markets that are on the rise is always a good idea. You can buy a home in these locations and then within a couple of years the house could dramatically increase in value.
Renting is Not an Attractive Alternative in 2015
For people not interesting in making a profit, the choice is between buying a home and renting one. It’s not an easy choice, but right now buying looks like the better option. Renting is becoming more expensive, and the market is on the side of the landlord, not the tenant.
Even when you add in the cost of surveys, homeowners insurance and estate agent fees, buying still looks like the smartest option right now. And until rental costs start to slow or fall, this will remain the case.
The conditions for buying a home aren’t exactly ideal at the moment, but they seem to be marginally improving. Remember to think the decision over carefully before reaching a conclusion.