A lot of people are asking whether they should continue purchasing new properties in the current environment. Some people answer this by saying "don’t be a sheep, when no-one else is buying is exactly when you should be buying", others are saying "What's the issue, the property markets probably aren't going to drop that much", and still others are saying "Don't be crazy, we're entering a recession so it's time to back off and have a break".
The truth is that there's no right answer, but there are definitely riskier and safer courses of action.
You see, we don't know for sure whether there will definitely be a massive drop in property prices, but we do know that with all the signs around us and every report being released by top estate agencies and financial institutions that there is a very high probability that there will be a recession and that property prices will drop.
So really the question you should be asking yourself is not whether now is the right time to be buying property, but actually "how much is property most likely to drop by"?
You see, no-one can see into the future, so the only thing we can do is make a prediction based on what has the highest probability of occurring and then make your business decisions based on that. So the questions you should really be asking are:
1) How much is the property market most likely to drop by?
2) What is the most likely time frame between now and the bottom of a property market dip?
3) What is the most likely worst case scenario that I need to mitigate against?
4) How much am I willing to risk based on these predictions?
Only once you are satisfied with your own answers to these questions will you be able to decide for yourself whether or not now is the right time for you to be buying the next property.
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