A question that is becoming increasingly popular with our customers and the public. Before you read on, the honest answer is… who knows?
My initial question would be, what is the reason for you wanting to buy or sell?
If you are looking to buy a property for a short-term investment, the risks associated will be much higher than if you are looking to buy a property for the long term. Let us explain:
Short term investing includes methods such as flipping.
There are two different types of flipping.
One is when an investor buys a property, refurbishes it, and sells it as soon as possible for a higher price than they originally bought it. This option usually relies on a steady or inflating market.
The second type of flipping is buying a property in a market that is rapidly increasing, making no refurbishment efforts or repairs, and selling it when the market has inflated a few months later.
With house price growth being 3.9%, up from 1.3% this time last year it could be argued that both options are still valid. Richard Donnell, director of research and insight at Zoopla has said “looking ahead to 2021 we expect house price growth to reach 5% by mid Q1 and then slot to one% by the end of the yar.
Long term usually includes residential sales and buy-to-lets. Historically we can see that long term, house prices increase although the inflation of house prices can be dramatically affected in times of uncertainty.
If you are looking for a short-term investment, the current COVID-19 and upcoming Brexit uncertainty poses risks to flipping. Does the reward of a steady or inflated market outweigh the risk of a potential crash?
If you are looking for long term investment, the statistics would put my mind at rest… what about yours?
If you are thinking of buying or selling property in the new year, we would love to help. Get in touch today!