7
Jan
The right time to buy
Those looking to buy homes - whether as first-time buyers or as
purchasers of luxury top-end property - will have heard plenty of
gloomy economic news recently, but the reality may be a much more
positive one, in which there are some very good reasons to
buy.
Not the least of these is that, while buying at the top of the
market often means the only way is down, buying at the bottom
brings the opposite prospect of rising values. If 2009 is when the
market hits its base and then starts upwards, it will be time to
ignore the pessimists and make what could be a most timely purchase
at an attractive price.
The regional housing expert for Persimmon Homes in the Lancashire
and Cumbria region, Diane England, recently suggested that, while
2009 may be hard for parts of the property industry, the current
situation offers a window of opportunity for purchasers thanks to a
combination of factors that make more bargains available.
She said: "Now is actually as good a time to buy as any because in
addition to the positive interest rate news, which is great for
buyers from across the spectrum - from youngsters looking to take
their first step on the property ladder to those looking to make
the move into a bigger home - you can get a bigger house for your
money."
For those keen on buying a large home, the second possibility is
the one that may be most of interest. Moreover, buying now could be
the most opportune decision because the turning point of the market
could be closer than pessimists think. This is the view of the
chief executive of property firm Assetz, Stuart Law. He told the
Daily Telegraph's TV station that he is anticipating a fall of only
another five per cent across the market before prices begin to
recover next summer.
A combination of factors will bring this about, he suggested, not
least the crucial one of banks making more lending available. Mr
Law stated: "We have already seen HSBC declare a much higher
lending target for next year and I expect to see many other banks
follow suit over the Christmas period."
Combine this with lower interest rates - which he predicted would
fall to one per cent and possibly to zero - plus pent up demand and
there will be a rise in transactions next year.
Of course, the predictions of Mr Law may or may not be accurate, as
he himself admitted: "With all the current uncertainty in the
various branches of the credit crunch, predictions themselves can
only be made with a very moderate degree of certainty."
Against that, however, there are some certainties, as Bank of
England deputy governor Charles Bean stated last week. In his
interview with the Financial Times - in which he admitted a base
rate of zero is "possible" - he also stated of the recession: "We
will get through this. The one thing that I can confidently assert
about downturns and recessions is they do come to an end,
eventually."
For that reason, those who buy soon may find themselves not only
with a bargain now, but a large and valuable asset in the longer
run.