Should first time buyers wait until after Brexit, or rush and buy before 29th March?

Crashy_Time

_CC_ wrote: »

Yet more gibberish from Crashy.


Going home after Brexit? If you're referring to EU nationals then it's been made clear to them that they'll be allowed to stay and be protected post Brexit.



Even in 2017, i.e. after the referendum, the UK had close to a 300,000 net migration figure.



Rental properties may not 'disappear' but there is, and will continue to be given the starting point, more demand for housing (owner occupied and rented) than supply.


Your link, again, backs up what RICS is saying about a reduction in Landlord instructions. Looks like it could be a bad time to be a tenant

Looks like tenants AND employees will be going elsewhere in this particular scenario .......


https://www.property118.com/stopped-letting-properties-fergus-wilson/


Unless you know what the post Brexit employment landscape will look like making assumptions about "demand" is a risky strategy, especially if you are a landlord.

cjv

I am going ahead with my plans and not letting the what, if's and maybes affect my decisions.

This may even work in my favour, if there is less competition for properties due to some people waiting to see what happens with Brexit.

Crashy_Time

cjv wrote: »

I am going ahead with my plans and not letting the what, if's and maybes affect my decisions.

This may even work in my favour, if there is less competition for properties due to some people waiting to see what happens with Brexit.

Just means you are taking the over-priced property that no-one else wants (at the price) That strategy is unlikely to work in your favour in this market and general economic/political climate IMO.

cjv

Crashy_Time wrote: »

Just means you are taking the over-priced property that no-one else wants (at the price) That strategy is unlikely to work in your favour in this market and general economic/political climate IMO.

Sorry, I meant more chance of getting the specific plot I want on the development. I am comfortable if house prices decrease as I am not looking at a short term proposition.

Crashy_Time

cjv wrote: »

Sorry, I meant more chance of getting the specific plot I want on the development. I am comfortable if house prices decrease as I am not looking at a short term proposition.

OK. Hopefully rents will also be decreasing after Brexit.


https://www.theguardian.com/money/2018/oct/16/taxes-buy-to-let-landlords-rents-generation-rent-buyers

Tom74

In terms of price alone, it is probably better to wait until after Brexit.
But there are perhaps better reasons for buying now:
a) The market has priced in some uncertainty and if things work out better than expected, or we stay in the EU, house prices will keep rising
b) If there is an economic crash, the availability of mortgages will be much reduced, and it would in those circumstances be likely interest rates would rise steeply to support sterling. Plus if unemployment rises, you might not have a job to pay a mortgage
c) If house prices fall after Brexit, the availability of homes for sale will be reduced

Crashy_Time

Tom74 wrote: »

In terms of price alone, it is probably better to wait until after Brexit.
But there are perhaps better reasons for buying now:
a) The market has priced in some uncertainty and if things work out better than expected, or we stay in the EU, house prices will keep rising
b) If there is an economic crash, the availability of mortgages will be much reduced, and it would in those circumstances be likely interest rates would rise steeply to support sterling. Plus if unemployment rises, you might not have a job to pay a mortgage
c) If house prices fall after Brexit, the availability of homes for sale will be reduced

a) House prices are based on the price of credit, not only on if we stay in the EU. Interest rates, bond yields etc. are rising?


b) There already has been a massive economic crash, and none of those things happened in any meaningful way, why should they happen now?


c) The BTL sell off will take up the slack (there has been a massive rush into BTL by amateur investors betting on HPI making up losses from voids etc. They will now be spooked by Tax, Brexit and falling house prices) and people who need to sell still need to sell. It is actual sales that make the market, not people sulking because the market won`t pay them "what it`s worth".

badmemory

The only landlords that will be selling will be the accidental landlords who only own one property. The others will be turning into ltd cos to avoid the tax hits. They will then chuck their profits into their pensions & there will be overall a much lower tax take. I do wish this gov would turn their brains on & figure out what people's response to their actions would be. At least the LibDems restrained the worst of their tendancies for 5 years.

Crashy_Time

badmemory wrote: »

The only landlords that will be selling will be the accidental landlords who only own one property. The others will be turning into ltd cos to avoid the tax hits. They will then chuck their profits into their pensions & there will be overall a much lower tax take. I do wish this gov would turn their brains on & figure out what people's response to their actions would be. At least the LibDems restrained the worst of their tendancies for 5 years.

Then the gov. will close the loopholes or tax second property more, or holiday homes etc. There are too many votes now in being seen to be hard on Boomers/BTL`ers/2nd Homers not to do it. However the fact that creating a Ltd co. is necessary now, along with more expensive BTL mortgages will be putting many people off ever becoming landlords.

SouthLondonUser

Let's not forget that mortgages for limited companies tend to be more expensive and that fewer providers offer them