The referendum results are still fresh and might make some investors wonder what to do next. But don’t worry just yet, as long as you follow these five tips by Kate Faulkner, property expert of the free advice website Propertychecklist, you should make it through the troublesome just fine.
The Derby Telegraph published the property expert’s five top tips.
1. Don’t Panic
Keep calm and carry on is Faulkner’s first tip:
“We have lots of data about the housing market (over 20 years) and this helps us to understand what shocks like Brexit have caused in the past. Of course we can’t be 100% sure of the impact, but it is likely to be twofold:1. Buyer demand slows and as a result property price rises stall or flatten;2. Buyer demand slows and interest rates rise, which can reduce demand so there are more sellers than buyers, pushing prices down.In the first case, that can last three to six months; last time the latter happened, the falls lasted around 18 months to two years and wiped 15%-20% off property prices. Prices took around seven years to recover, but those buying post the crash have seen prices rise.”
2. Get To Know The Market
Kate’s second tip is to make sure you know everything you need to know about the market you’re considering investing in:
“It’s worth making sure you still go out and view properties, find two or three you like and then, even if you aren’t sure about making an offer, watch what happens to them. Do they sell quickly? Are prices reduced? Does one become such a bargain you can’t resist it?”
3. Seek An Independent Mortgage Broker’s Advice
When uncertainty hits, independent advice becomes more valued than ever before, the expert explained:
“In these uncertain times you need an expert who has seen property prices rise and fall and mortgage markets be easy to access or difficult. Whatever happens over the coming weeks and months, it’s important to seek their advice and understand the deals available – as with house prices, you can then see if they are getting better or not and decide whether it’s right for you to buy now.”
4. Buy What You can Always Afford
Invest in what you can afford – even with a glass-half-full attitude – Faulkner points out:
“To some extent this is now being taken into account by lenders and brokers. So if you buy now, they normally check if you can afford payments if interest rates rise, not just based on the current rate. What you want to avoid when buying a property is being forced to sell, so a good way to protect yourself is to check if you can rent the property out if needed so if you get sick or lose your job you can still hold onto the property until it’s a better sales market.”
5. Don’t Let The Headlines Frighten You
Like most businesses, papers are fighting for your attention. This might lead to headlines bigger than necessary, the expert knows:
“Lots of people want to get their names in lights at times like this, so many will create very scary headlines – especially in property! The reality is since the credit crunch – and it’s likely Brexit will exacerbate this – most properties have their ‘own market’ so any suggested average rises or falls are likely to be wrong. Get to know your local market by talking to local experts such as agents or surveyors.”
