Just lately you can’t open a paper or turn on the news without hearing about how property prices are still on the rise. As prices continue to go up anyone thinking of taking that first step on the property ladder is left wondering if now is the right time or if they have missed the boat.
On the one hand you may be concerned that the property market may be on the verge of a bubble, so maybe you are right to be a little concerned. However, on the other hand, price may continue to rise for some time and if you don’t act now, you may not be able to afford the property you are looking at in a few months’ time.
With mortgage rates at an all-time low, the smart move is to bare this in mind when borrowing as you may have to tighten your belt somewhat in the future when they inevitable start to rise. However, it’s not something potential buyers should worry about too much as many are predicting that low rates will continue over the short term, possibly longer. What’s more, with some great rates available now including some five year deals at under 3%, it’s certainly tempting to get on the ladder if you aren’t already.
Bubble fears unfounded
As demand increases, so do the rumours of a housing bubble. However, there are other factors to consider. As demand increases, supply shortens and then at some stage demand will start to decrease, often as more properties come on the market and that is when a bubble occurs. However, thanks to the government’s new help-to-buy scheme which sees Taylor Wimpey with a staggering 7000 plus homes on order, the chances are there will be a sufficient amount of available properties for many years to come. As such, worries of a bubble are most likely somewhat premature.
Property prices still rising
With interest rates still low and the chance of a bubble looking all the less likely, it would seem that now is a good time to buy. Add to this the Telegraphs claim that housing prices will rise by as much as 18% by 2018 and there is further evidence should you need it.
The fact is, when it comes to buying and selling property, it isn’t an exact science and no one knows exactly what is going to happen over the coming years. However, after a rocky road one thing is for sure, the future certainly looks brighter than it did just a few years ago, so if you are considering buying a property, now may well be the time to act.
All that remains is to look for that home of your dreams, consider the type of mortgage that is right for your wants and needs and to set everything in motion.