Ideal for younger generations looking to get on that ladder.
The UK has officially entered a recession and subsequent fluctuations in the housing market haven’t left anyone the wiser when it comes to the world of property. Indeed, these are turbulent times we’re living in and even those with a crystal ball are finding the future foggy. But that’s not to say that investing in property right now is necessarily an erroneous move. Contrary to all the doom and gloom in the news, now is one of the best times to invest in property on our green and prosperous lands. So, whether you’re looking to buy your first home or you’re hoping to find an investment property, read on for 5 reasons why now may be the best time to invest in property.
FALLING PROPERTY PRICES
While trying to foretell what future house prices might look like in the coming months is as unpredictable as a house made of cards, one thing property experts seem to agree on is that a recession can make buying a home easier, especially for first time buyers. According to the big bosses at Lloyds’ worst case scenario, house prices could fall by nearly 30% per cent by 2022.
As Ross Counsell, chartered Surveyor and Director at Good Move told the Metro ‘‘Recessions lead to job and income losses, there are consequently less people looking to invest in something as expensive as a new home, meaning house prices generally fall during a recession. Although this can cause issues for sellers, lower prices mean it can be easier for people to get on the property ladder and buy a home, especially first-time buyers’’.
Moreover, during these turbulent times, current homeowners are often more willing to sell below the asking price. Right now, after years of the opposite, it’s a buyer’s market.
SENSE OF SECURITY
With all the uncertainties that 2020 has thrown at us, we’re all seeking that extra sense of security. And for many, owning your own pile of bricks and mortar offers it in abundance.
In a world where working from home is becoming the norm, and staying at home with your four walls for company a prospect for months to come, owning your own property can make you feel stable and secure. Since we’re all spending so much more time in the domestic setting, it pays to have a space which is truly your own, we think.
A SECOND SOURCE OF INCOME
Another security blanket during these unprecedented times (note, new word needed) is not to be sniffed at. Indeed, owning a home can also provide a second source of income – especially if you’re considering a buy-to let mortgage – through income made via letting your property to tenants. In fact, many experts are suggesting that now is the perfect time to become a buy-to-let landlord, particularly because of the security that such a purchase will grant buyers in the future, in the face of topsy turvy times.
REDUCED STAMP DUTY
Another incentive to invest in property right now is the government’s recent decision to reduce stamp duty. In a bid to boost the UK housing market, the government scrapped stamp duty on house purchases of up to £500,000, potentially saving home buyers thousands of pounds in taxes; a welcome relief for first time buyers wishing to get on the property ladder, we think.
However, those planning to purchase additional homes or a buy-to-let home will still have to pay a lower, temporary stamp duty surcharge, though it still means serious savings overall. Do be aware that reduced stamp duty has been billed as a temporary measure and only applies until March 2021. Like all taxes, different rules apply to people in different positions, so it’s best to check the government website for more details – you never know what sort of u-turn these guys might pull, after all.
HELP TO BUY
Have we drummed home how much times are changing at the moment? Didn’t think so. Allow us to put on some Bob Dylan to emphasise the point. Currently, the UK government’s official help to buy scheme is still going strong. This scheme offers buyers the chance to buy a share in a new build property, between 25% and 75%, lessening the burden of purchase. This is a great way to get yourself onto the property ladder sooner rather than later and take advantage of incentives still available, designed to encourage you to do just that.