Property investment has always been a safe bet, whether it is for your own home or a money making opportunity. However, there are now factors at play that suggest that this might not be the best time to put your money into bricks and mortar. The experts at Hopwood House discuss the current issues effecting property investment in the UK right now.
The Political Situation
The housing market is always deeply affected by the political landscape, and factors such as the General Election and Brexit are sure to have an impact. All investment markets like stability and certainty and this is something that the global political situation has not really provided recently. These issues will have their own bearing on the economy, which in turn will influence the property market.
For some, waiting until the outlook is more certain before parting with their cash seems the sensible option. The length of your fixed rate mortgage could also be a consideration, as you do not want to be negotiating new terms at a time that you know will be filled with political turmoil, such as the climax of the Brexit negotiations.
Keeping track of the government’s budget announcements is also a wise move as these will always have some sort of impact on the housing market. Whether it is help-to-buy schemes or added taxation for buy-to-let landlords, you will need to be aware of what this could mean for you.
As the average wage has failed to keep up with the rise in inflation and living costs, many have experienced a spending squeeze that has caused house prices to begin to fall. Whilst prices are still high, slowing growth means buyers may find things tight when it comes to making their move. It is important to keep on top of market trends and the reasons behind them in order to decide whether it is a good time for you to invest. That is, you need to understand whether buying a home is better or finding a new home builder for a custom home will serve you better.
For those looking to add to an existing property portfolio, there are new hurdles to be aware of. There has been an increase of 3% in Stamp Duty which will affect your initial purchasing situation. In addition to this, there is also a change in the way landlords can claim tax relief on their rental profits, which is likely to eat into the gains you plan to make.
You will need to consider these factors carefully and calculate whether this will provide you with the profits that you need. The costs associated with buying new build properties for sale in Hull will definitely vary from the costs associated with purchasing an apartment, or even raising a property from the ground up. With mortgage lenders likely to bring in increasingly tougher affordability tests, getting the cash together in order to buy is likely to be more difficult than it has been previously.
Whilst there are many factors affecting property investment, no one can tell you whether you should be investing or not. This all comes down to your own personal circumstances and whether budgets will be stretched to breaking point or if increasingly high deposits can be scraped together. Your credit rating, personal outgoings and future plans will all be a big part of whether you should be signing on the dotted line right now. If, however, you think that it is the right time, then do a bit of research as to where you should buy a property. Location is the most important thing in real estate. You need to find a good neighborhood as well if you are planning to live in the house yourself. For instance, if you are planning to settle down in River West, Bend, Oregon, then you might have to find a good community and a livable area (which, by the way, can be found by visiting https://bernardrealestategroup.com/river-west-bend-or/).
Politics, the housing market and the economy are all parts of the investment decision making process, but it is you and your own circumstances that really determines the best time to buy. If you have the right finances, the right property and the right time in your life, then now might just be the perfect time after all!