Buying a house, particularly if it’s your first home, is always a particularly challenging time – even more so if you have concerns about the economy you’re buying into. Even before the EU Referendum had taken place, speculation over how leaving the EU would affect the United Kingdom was the major talking point amongst politicians and civilians alike. Exactly how much Brexit will affect our livelihoods is still unknown, but it’s fair to say that the general public has concerns over how Brexit will affect a number of things – one of these being the housing market and whether buying a house in London at this time is a sensible financial decision. The question on most homeowners’ minds as far as Brexit is concerned is whether or not property prices will change, (if they do change) HOW will they change and when exactly the right time to buy property may well be – before or after Brexit has passed?
What are the positives for buying a new house in London during Brexit?
Brexit uncertainty is keeping mortgage interest rates lower, meaning you may well find yourself better off if you choose to buy whilst Brexit is still ongoing. Putting off major life decisions because of events going on in the political sphere is not necessarily a sensible choice – particularly where the outcome of the event is still unknown. People are always going to be looking to buy and sell property, and that won’t change because of Brexit.
In fact, buying a new house during a duration of political insecurity could potentially be beneficial to you – with house prices at their lowest, you’ll find yourself able to purchase for a much smaller price than you likely would have paid a few months or years ago. That said, there are some negative connotations attached to buying in this time of political insecurity – and these are things you should also consider before taking that massive step onto the property ladder.
Do the negatives outweigh the positives?
Whilst it might be tempting to take advantage of the current housing climate now, you may find that actually, you’d be better off waiting until the market reestablishes itself. Buying and selling property in a reduced market essentially means that any value placed on the property you purchase is less than it would have been in a former market – if other houses are cheaper to purchase, then your house is likely also worth less than it might have been before Brexit. Selling during this period of time means that you likely won’t receive the full value of your property – and proud homeowners may well find themselves at a loss as to why their gorgeous homes are being so undervalued.
However, with this all said, there’s absolutely no guarantee whatsoever that after the uncertainty surrounding Brexit has passed that the market will recover and increase in value. With such uncertainty surrounding the entirety of Brexit, it’s fair to say that the market value could actually decrease once it has all been resolved in parliament. Taking a risk and choosing to move after Brexit has been finalised could actually result in you paying much more for your property – if, after Brexit has been resolved, the housing market regains momentum, then there’s a good chance that house prices may well rocket. Often, tackling the unknown is much more terrifying than getting things done when you know exactly what to expect.
Some mortgage advisors are suggesting that fixed-rate mortgages shouldn’t be taken out willy-nilly until after Brexit has been fully resolved – but there are plenty of alternatives to low, fixed-rate mortgages that will leave you feeling much more positive about your investment post-Brexit, it’s just a matter of taking the time to research your options. At the same time, some advisors have stated that if you’re planning on buying and living in the property long-term, then now might be the best time to buy – low purchase prices, low fixed-rate interest rates and the possibility of an increasing economy in the years to come could all spell rewards.
Whatever your choice, understanding your needs and making your move as simple as possible is our aim at Ants Removals. If you’re looking for a team of experienced individuals to help you pack up and move your belongings to your new home then you don’t have to look much further than us. Whether you’re in the market for storage solutions or a simple moving service, we can perfectly meet your needs. No matter the distance between your old home and your new, our team of professionals will make sure that your belongings get there safely and promptly – the repercussions of Brexit has added more than enough stress to our lives, let us make this stage that little bit easier for you. Choose Ants Removals for an easy and professional service.