When will property prices bottom out? Does it matter?
We often talk about the idea of price and cost being two different things. This week we want to ask you if you think about property in terms of ‘price only’ or as a ‘relative cost’.
So is a decision to buy or not based upon how much a house is going for or how much you would have to pay as a mortgage versus the cost of renting?
MyHome recently did some a consumer sentiment survey showing that….
- Long term renting at one address still hasn’t become the norm as it has in Europe with only 8.7% of respondents stating that they are in the same property for more than 6 years.
- 80% of renters intend on purchasing a home
- 97.7% of them will be first time buyers
What we can tell you from within the mortgage finance market is that irrespective of a person’s intentions, it may be nigh impossible to obtain financing in many cases.
So we ask you….
- Would it be better if banks had higher rates and were more willing to lend?
- Are you waiting until prices hit a certain point? If so what price in what area is your magic number?
- Are you going to rent long term, if so then what kind of lease do you have?
- Have you considered Tax Relief at Source or potential Site Value Tax in your estimates of costs?
We look forward (as always!) to a good debate!
Karl (@karldeeter on Twitter)