In a world where uncertainty is pretty much the order of the day, with Brexit affecting prices in Britain and extreme weather conditions threatening food supplies and stability elsewhere, it may pay to do a little research before selling your home. After all, it’s a big decision.
Why do you want to sell your home?
This is one of the biggest questions, and for some it’s easier to answer than for others. You might need to move because job opportunities elsewhere have sprung up, and a four-hour commute holds no appeal. That’s fair enough. But what if your reason for moving is because you want a bigger house? If you have a little sprog on the way, that extra room will come in handy.
Yet there are other options available – for example, have you thought about an extension? This can often be cheaper than moving, and it can significantly increase the value of your home. You might also consider getting the loft renovated. A second mortgage or perhaps a loan might be more cost-effective than having to pay stamp duty, solicitors’ fees, estate agent fees and everything else that goes with selling and then buying a home.
Timing is everything
Selling a home is often a question of timing: do you need to sell your home right now, or can you wait a bit until prices are more favourable? In many cases, selling just before January often yields slightly lower house prices than selling during the summer months. However, if you’re buying a new house, the longer you wait, the more house prices are likely to go up – and they could easily end up rising faster than your salary.
In addition, if you don’t want to sell your house, why not consider renting it out? It provides a backup, and it also provides a means to make a little extra income that could help finance your new purchase.
Condition is equally as important, so make sure you make repairs, give it a quick paint job and all the other small jobs that can have a surprising effect on the overall price.
Brexit!
Brexit is, of course, a major issue for long term planning. Although nobody really knows what’s going to happen tomorrow, next week or even next year, Brexit adds additional uncertainty to this process, as it’s likely to impact multiple aspects of our everyday lives. It could also have a negative economic impact, which is why it’s best to get your finances in order in case the worst does happen.
We are not, of course, saying that the worst will happen, but it’s always good to have a contingency plan. This can range from having a healthy savings pot to diversifying into multiple income streams, such as from an investment property or perhaps investing in EFTs, mutual funds and so on. There’s also the argument that buying property is one of the safest investments you can make, and even with Brexit this will likely stand true for a while to come.