The property market is booming right now and it feels like as good a time as any to finally stop umm-ing and ahh-ing and commit to making a move. But hang on! We are still in the midst of a global pandemic! Are you sure?
Ugh… here we go again! So, let’s take a look at some pro’s and con’s of buying.
What are you looking for?
For those of you that are interested, we are looking for a detached property with a minimum of 3 bedrooms (with a separate office area) or 4 bedroom, so that we have 3 bedrooms and an office space.
We have to have a big enough driveway for 2 cars, because parking at our current home is on street parking and it’s one of my biggest bugbears. I would also like a garage for a gym space and somewhere to store the Hubby’s soon to be purchased motorbike.
A big enough back garden for our 2 Dalmatian dogs however, if you ask the Hubby he will tell you that he desperately wants a small holding so he can start a little farm.
Pro’s of buying in 2020
The temporary suspension of stamp duty could save us up to £15,000, due to a policy introduced by the Chancellor where stamp duty is suspended on the first £500,000 of all properties in England and Northern Ireland.
The need for a bigger space and having a separate home office, is certainly driving a need for wanting to buy a house.
Con’s of buying in 2020
House prices are at an all time high according to the BBC and have had their highest monthly rise in August 2020. The highest in 16 years!
Lenders are tightening their criteria for mortgages and asking for bigger deposits for their security.
Homes are selling quickly, which definitely doesn’t help us. Having had to work from home since the start of lockdown in March 2020, the wish list for our family home has changed so much.
So, the problem we have here is having to get mortgage ready, viewed and offered quicker than someone else and with the type of house we want not being readily available on the market, we may struggle. So is it worth the added pressure right now?
What are the findings?
As you can see, there are clearly more reasons against moving house right now and having researched further, I found out why.
It is normal that the majority of people want stability by the time they reach the Christmas period, so this combined with more properties being available and the suspension of stamp duty could explain the increase in house buying and sales prices.
Our current housing and work situation means that we are not in a massive rush to move and having establish that the stamp duty suspension lasts until the end of March 2021, it means that we have options to still save money on house buying for a few more months yet.
So, in conclusion?
I think the key here is to wait for the housing market to die down a little again over the festive period and understand if the criteria has changed much with the mortgage lenders. If it has, brilliant! We can look again then and if not, we can look to hold off again until the new financial year in April 2021, when competition for buying property will ease off again.
Competition drives up house prices, and as this reduces we should start to see more properties available at an affordable rate with less chance of being gazumped or pipped to the post.