Since those heady days nearly ten years ago when house prices peaked after an impressive growth rate, the UK housing market has been very unpredictable, proving that it is not the ‘get-rich-quick’ strategy some believed. However property remains a sensible long-term investment if certain rules are followed but expectations about possible profits are realistic.
In this slow market, location is still a strong factor but you also need to manage your budget carefully. Choosing the right mortgage is essential, with an adviser helping to assess your individual circumstances and recommend borrowing that offers sustained value for the long term.
Aside from your own home, the buy-to-let market is also a possibility. However defaults amongst buy-to-let borrowers have made it much harder now to find a buy-to-let mortgage with lenders now generally insisting on a deposit of at least 25%.
Most financial experts believe the property market still offers long-term growth potential although returns are likely to be lower than they have been in the past. As demand for housing continues to grow there are compelling reasons for getting involved in buying property, assuming you are settled and know what you want. The challenge is to make sure that you can afford the repayments and upkeep, particularly if interest rates rise in the future.
For first time buyers there seems to be a constant stream of incentives designed to help with getting on the housing ladder. If someone needs help working out whether they could take advantage of these incentives then they need to get in touch with us at Platinum.
We’ll help put a new roof over your head with mortgage advice you can count on – call to arrange an appointment.