|With Interest Rates At An All Time Low|
Is Now Best Time To Buy Another Chiswick Property?
As expected, the bank interest rate is reduced again to a new, all-time-low of 1%. Does this present an unprecedented opportunity to buy another property in W4? Some local estate agents think it may do.
Thousands of Chiswick homeowners on tracker mortgages are set to make substantial savings compared to last year, paying just a nominal sum for their home loan.
For homeowners facing financial insecurity, due to redundancy or dwindling savings, the reduced mortgage payments are a welcome relief. However, for anyone looking forward to a healthier bank balance or some cash to spare, there is a view that this is an exceptionally good time to invest in a flat or house in Chiswick.
The sharp fall in monthly payments has set many borrowers thinking about buying another property. Christian Harper of Chiswick estate agent Oliver Finn: “One of my clients was paying £1600 a month to Northern Rock last year and is now paying £600 to another lender for the same property. The monthly saving of £1000 is enough to buy another property at an asking price of up to £250,000.”
As well as the Bank of England interest rate cut, other factors contribute to the rationale behind investing in another property. According to the Halifax, the average price of UK homes rose by 1.9% in January from December’s figure, though it warned that a single month’s results did not signify the end of the downward drift in prices.
“Asking prices are considerably less than last year to reflect market forces - as vendors have become more realistic," says Harper. "There are fewer serious buyers around as many have not been able to raise the finance or find the larger deposits now demanded by lenders."
Some still believe that buying property locally is like catching a falling knife however there are an increasing number of local property market players who seem to believe that investing at a time of maximum gloom is the best way to make long term profits.
February 14, 2009