At least once a day I am asked this question by clients and I don’t blame them for it. Brexit is a confusing political mess that has made everyone, including the government, uncertain of what will happen in October.
You can go to ten different sources quoting experts and you’ll read ten separate opinions. Nobody can be certain what will happen and that includes if housing prices will rise or fall. It’s a mystery and I can understand why this may be causing you to wait and see how it all pans out.
In this article I’m going to explain why, in my honest opinion, I think you should NOT wait until Brexit to buy a house.
Is Brexit the only thing stopping you?
If there are other factors that are making you hesitant to get a mortgage right now, including Brexit, then I can understand why you are hesitant. If it’s the only thing stopping you though, why wait?
Have you saved a deposit? Is your current salary high enough for the kind of property you want to buy? Are you ready to move now? If you find yourself answering yes, why wait until October to start the process?
Honestly, not much will change between now and 6 months time when it comes to the housing market. It changes all of the time, you’d be waiting for the perfect time forever. Also, what if house prices go up because of Brexit, will you keep waiting?
Brexit has not made it a bad time to purchase a house, if you’re ready now, go for it!
Why pay six months more rent?
The money you would spend on six months rent waiting for the outcome of Brexit could instead be used for mortgage payments. That’s not to say everyone is in the position for a mortgage, but if you are, putting that money into an investment is a much better idea.
And hypothetically speaking, if house prices drop after Brexit, you may think you made the wrong decision. Think about it like this though, the money saved from six months rent could be used on a deposit, meaning you could get a better monthly rate right now.
You could be in your new home before Brexit
Instead of waiting around for Brexit to be over and done with before you buy a home, you could start the process right now and move in before it even happens! Wouldn’t that be grand?
Even if house prices go down, you won’t feel regret while you are sitting on your new sofa enjoying a cup of tea, knowing you are set for the next 20-30 years.
Property prices historically increase
Unless you are buying a property to quickly flip it and make some money, this point will apply to you. Throughout history, house prices have always increased, and I mean always.
If you are buying with the intention of living in a property for a long time, any short term property price declines will be smoothed out in the future.
And Brexit will not change this.
As of April this year, the average house price is £236,619. 10 years ago, the average price was nearly 100k cheaper at £154,663. This reflects a 4.3% average annual increase.
What if other circumstances change for you?
If you’re reading this article, I assume you’re in the position to consider buying a new home. Therefore you have the salary that is necessary for you to keep up with mortgage repayments on the type of property you want (not one you’re settling for). What if your circumstances change in 6 months?
This especially applies to people who are self-employed and contractors, your financial situation can take a swift turn. If you are making good money right now and you’re in the prime position to buy, don’t waste the opportunity!
Have you ever bought something for full price only for it to go on sale a week later? It does hurt a bit I’ll be honest. How were you to know that the sale was going to happen though? If we went around all the time waiting for sales to buy things, we’d never buy anything!
IF house prices do drop, and that’s a big if (the biggest I’ve ever seen), it will not be by an amount that will make you feel regret for purchasing a home now. Picture yourself starting the process now and getting the keys to your new house before the year is over…and then imagine if prices go up!
Brexit has everyone on the edge of their seats until October, anticipating the changes it will bring to the UK. It’s understandable if this has made you hesitant to buy a home.
In my opinion, if you’re 100% ready and Brexit is the only factor keeping you from going ahead, you should NOT wait to buy.
Seize the opportunity you’ve made for yourself right now and don’t let Brexit stop you from starting a new chapter in your life, whether it be by yourself, with family or with friends! Control factors you are able to and stop worrying about what’s out of your control.