Post-Referendum property buyers can take advantage of the market

According to Stacks Property Search, uncertainty has been the enemy of those wanting to buy and sell property in 2016.

Related topics:  Property
Warren Lewis
11th July 2016
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James Greenwood of Stacks, offers his advice on how to take advantage when purchasing a property now that we are leaving the EU: "The lead up to the Referendum was a quiet time in the UK property market as potential buyers and sellers sat on their hands waiting for the decision. While the future of the UK is far from certain post-Referendum, every day brings a little more certainty. We know that the commercial property funds are suffering; we know that interest rates are more likely to go down than up; we know that the Stock Market is more robust than many anticipated. Housebuilders that have been hammered by uncertainty about the economy have, at the time of writing, started to regain some ground.

We also know that estate agents are reporting some fall-throughs where buyers have been specifically affected by the Brexit decision, for instance relocation decisions being reversed, but that largely, deals are progressing, demand has increased a little, and that overseas buyers are taking advantage of a weak pound to snap up investment property.

In our view, if you can be certain in an uncertain world, you can take advantage of the situation. A collapse in property prices is not on the cards – Mark Carney has taken care of that. Equally there is no expectation of any great increase in prices. Before the Referendum it was agreed by many that price growth was slowing. At Stacks we held the belief that prices were overvalued from 3% - 12%. Our expectation is that, depending on the level of growth that different regions have experienced in recent years, we will see some dampening of prices.

As a buyer, you can take advantage of this non-volatile market. Our advice to buyers is:

    Explore finance options early, avoid high levels of debt and don't over-borrow.
    If you can be a chain-free buyer you will be in a very strong position
    Don't overpay, there will be good opportunities for negotiation
    Don't be seduced by 'fire sales' – as always, don't buy anything that you wouldn't buy if it wasn't cheap!
    Buy sensibly for the long term. Short term property moves rarely make financial sense.

Finally, if you've been putting off a decision to move for months, now is the time to get active. Take advantage of a climate of opportunity, but, as always, be obsessive about your due diligence.”

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