Above is the question that first-time buyers and potential renovators always ask themselves! Unfortunately, it’s often difficult to answer such a question. This is because there are so many different factors that need to be considered to decide whether now is the right time to buy a house. Find out what they are below.
Yes – Stamp Duty
A factor most definitely in the favor of the yes camp is that there is currently a break on stamp duty. Stamp duty is a form of tax that is levied against higher-value properties and can make a big difference to whether the home of your dreams is affordable or not.
Until 30th June 2021, there is a stamp duty break, meaning no one has to pay this levy. Then after 30th June to the end of September, any home worth over £250,000 will be liable for stamp duty. Of course, this means that if you do decide to buy now you could save a great deal of money.
No – Depends on your personal position
One reason why now might not be the right time to buy a home is your own personal financial circumstances. After all, it doesn’t matter how good a deal you can get on the price of a home if you just don’t have the money to cover the mortgage. Indeed, your mortgage provider should turn you down if they do not believe that you can reasonably afford the payments you will need to make, but it is always worth bearing in mind that if you default on your mortgage you could lose your home.
Furlough, and jobs lost because of the pandemic only make this situation worse for some people. Indeed, while many are in the position to buy a home, many are struggling to make ends meet, something that means it definitely would not be a good time to make one of the biggest investments in their lives.
Of course, if you are unsure about whether you are in a financial situation to purchase a home right now, consulting an expert can help you make the right decision. That is why you may wish to visit a Mortgage Broker who will help you ascertain whether you could be accepted for this type of loan right now, and find the best type of mortgage for your needs.
Maybe – The current state of the market
Coming squarely within the maybe category is that we are currently in something of a booming market. This rise in the demand for property has largely been caused by COVID-19, with more people looking to buy homes with more indoor and outdoor space. It has had a knock-on effect and caused prices to rise, something that gives those with properties to sell a chance to make more and make the move to their next home.
However, for first-time buyers, in the middle of a boom may not be the best time to buy, as they have no sale from which to profit. Buyers also risk paying over the odds for a property at the moment, and many financial experts are predicting that a crash could be coming soon. Something that means those buying at high prices could stand to lose a good deal of profit, at least in the short term if they do buy now.