Crash goes the Property Market

I love the UK press. We have a New Year so the previous one must be analysed and scrutinized before it can be put to bed, and the New Year needs predictions. So we arrive at the first weekend of the year with the prediction that UK property prices will crash with devastating consequences.

It’s OK – you don’t need to hide behind your sofa until it’s all gone away. There’s one simple rule – never sell in a down market. If the market has gone down and you sell – you will lose money – SO DON’T DO IT.

You might be in negative equity - that’s temporary – the market will come back and your lost equity will be recovered. By far the worst thing that can happen is that your mortgage payments go up because of a change in the base rate. This will hit you where it hurts almost immediately – but that’s beyond your control.

House prices crash because people get nervous and sell their property believing that they need to get the best value possible before the market gets worse. This will make the market worse. It is a self fulfilling prophecy.

If you need to relocate – don’t sell up – rent out your home and buy another one. You will benefit from the down turn in the market and will bag yourself a bargain. If you purchase a new build property, one that is about due to complete, or a stock unit – you may able to get the developer to include furnishings and legal fees in the deal.

Suddenly the property market doesn’t look quite so scary – all this talk of doom and gloom can be made to work in your favor. The property market goes up and down – just stay on your toes and react to it. If everybody sells – it’s a great time to buy. If everybody buys, it’s a great time to sell.

Stay positive – stay focused.