We’ve all seen the headlines. When it comes to your financial assets, the Western world is not doing so well just now. Energy prices are soaring, currency values are plummeting, and our taxes aren’t getting any lower either. What then, does this mean with regard to property pricing and will we see a 2008-style crash?
It depends on whom you ask
Some economists claim that we may well be headed towards another property price crash, according to Business Insider The construction market continues to boom with ever more new build estates rising up out of seemingly nowhere. In the meantime, mortgage rates are higher than ever before and are set to continue rising well into 2023. This ‘perfect storm’ could well mean a crash in the housing market.
On the other hand, some experts simply explain that the current property market is cooling down and getting weaker, although there are not yet any signs of a full-on crash. They seem to think that we’re merely going to be moving to a more modest market for sellers rather than one where people are seeing top end sale prices.
So should you buy or sell now?
Again, that depends on whom you ask and where you are located. If you are looking to sell, finding a conveyancer you can trust, such as Sam Conveyancing should be one of your first steps. Make sure you have your property valued and, perhaps, steer clear of properties that are well outside your comfort zone in terms of a new mortgage. Rates are certainly unpredictable at the minute, so even a five-year fixed deal may not protect you from what’s to come after though this could be an acceptable move if you set up the parameters of the mortgage with a conservative approach.
Make sure you research different freehold conveyancing quotes and ask for recommendations from friends and family as well. This way, you’ll ensure you get the most value for your money and won’t lose out in a volatile market. When it comes to choosing a conveyancer to support you, you’ll need someone with whom you can communicate easily and who will get you through to the finish line.
How do you protect yourself and your property?
The most effective ways to protect your financial assets would be to ensure you have little to no mortgage, as well as savings put aside for any emergency situations. Steer clear of low deposit mortgages that may quickly send you over the edge with rising interest rates. Do your research and make an informed decision as to whether to rent or buy in the current housing market. Lastly, create a budget for yourself that lists everything you earn and spend, to ensure you know exactly what your financial capabilities actually are.
To recap: Will we see another 2008-style property crash? It’s hard to say just yet, but we might. For this reason, you’re best off budgeting your money well and protecting your assets. If you do decide to move right now and want to buy or sell your property, make sure you pick a conveyancer you can trust and communicate well with. Staying informed in this market is absolutely essential, and working with someone trustworthy and recommended is a key aspect of doing so.