Time to invest: real estate in the UK fell by 2.6%...
Time to invest: real estate in the UK fell by 2.6% over the last year
According to the Nationwide building society, real estate in the UK fell by 0.7% in July compared to June. House prices fell by 2.6% year on year. The fall was 13% with a peak in 2007.
The British housing market was falling faster than the economy. UK GDP contracted by 4.5% in I quarter 2008, while the fall in property prices is calculated in double digits.
Lower prices on homes in our country due to lower income levels, increasing the requirements for solvency of borrowers, as well as fear of the population before the crisis. However, the current market downturn should be used to purchase housing. Here are the arguments that support this thesis:
• The fall of the value of the asset long-term investors can save money on purchasing it. And if you buy a property for their own use, a good time is not worth waiting for.
• Real estate is cheaper in the coming quarters with high probability because of continuing problems in the economy. However, the drop will not exceed a few percent. If the demand for homes is restored, you may not notice when prices return to pre-crisis level.
• The cost of mortgage credit today is very low. Therefore, having issued a fixed-rate mortgage, you commit to a decade favorable terms of payment of debt owed to the bank. The savings will amount to tens of thousands of pounds in all the years of service credit.
• The economy has a cyclic nature, therefore, all crises eventually end. The British housing market is in decline since 2007, so the turning point is near. Investors who purchase a home today, buy a market bottom.
• Buying property is a reliable way to protect capital. You will not lose their savings as a result of default of banking institutions, as well as due to falling stock market.
Pay attention to the real estate market in London, which is growing even in times of crisis. This is due to strong demand from wealthy foreign investors. Completion of the crisis will lead to demand for property in all regions of the UK, so the market will recover quickly.
Is not it better to buy a house until prices have not risen?
