November 15, 2007

The worst time to buy property

It’s a difficult call when to invest your hard earned cash into a property. This is especially difficult for the first time buyer, who traditionally is on a lower wage as they are also starting off in their careers so the pressure is doubled.

So with the housing market slowing down, prices are naturally falling so you would think that this would be a great time to invest, but then again interest rates are at a six year high! And to make things even worse inflation is creeping up too.

First time buyers are having to commit to larger loans or putting down a larger deposit in order to even get their foot on the first step of the ladder. There is the stamp duty problem too, which means that some first time buyers have to pay stamp duty, the starting level is £125,000, which is £1,250 plus other fees etc.

Source [UK Home and Garden]