Buy Sell or Hold?

Michael Delaney FNAEA. Lane & Bennetts

Michael Delaney FNAEA. Lane & Bennetts

Just like the stock market there is a right time in the property market to buy, hold or sell. But, unlike the stock market, buying property is usually allied to selling, so a clear financial advantage is harder to anticipate or achieve. Despite the turbulence of the past year the market now, against all odds, is rather good for selling. Here’s why.
Figures just out show that the rental market is reaching some sort of equilibrium, with the numbers of available properties having dropped over the past six months or so. This is an important indicator. It suggests that those owners who couldn’t sell their homes in the recession, and were thus letting them instead, have now begun to find buyers.
Over the course of the year buyers have been snapping up those properties priced keenly to sell. These bargain seekers have, in the main, been cash buyers or those with sufficient funds to require only a small mortgage. Now two things have happened in the market.  Cash buyers are drying up along with the bargains. In many areas prices have been rising to reflect the paucity of available stock.
Will more property become available over the coming months as home-owners see more chance of a sale? Would a greater supply of property for sale suppress, or even reverse, some surprising price advances of the past few months? These questions are hard to answer in an economic environment that threatens greater job losses and higher taxation as well as a general election.
As ever the real drivers of the property market are deaths, births, confidence and taxes. Any incoming government next year can’t do too much about the first two.
So what to do now to make the most of this market before the general election and even Christmas? Why, sell of course. But if there is a property to buy as well it really does not matter too much in the financial scheme of things. What surely does matter is that you and your family are happy and safe in the home you have or the home you buy.
Michael Delaney FNAEA. Lane & Bennetts

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