Timing is everything when it comes to buying a property. Certain times of the year are better than others, while your chances of securing a good deal can be influenced by housing availability, buyer competition, changing inflation and more. This article explains some of the main factors that will help you determine the right time to buy a property.
Affordability
Currently, affordability is an issue facing many prospective first-time buyers, with the average property costing over 9 times the average salary. Therefore, it is vitally important to have your finances in order before committing to buying a property.
You should only buy a house when you can afford to, taking into account additional costs such as stamp duty, conveyancing, surveys and removal fees. Check your credit score before you apply for a mortgage, as your financial history will be put under the spotlight by the lender before they agree to give you a loan.
Are you buying in a price inflated market?
Prices on the property market have continued to increase over the past decade, largely driven by a housing shortage that is unable to satisfy current demand levels.
But this doesn’t mean bargains can’t be found, as a lot depends on the seller’s circumstances at the time. If they want to sell quickly, they may be willing to take a lower offer, while paying in cash or not being linked to a property chain also increases your appeal compared to those who are not in the same position.
Number of properties available
During the spring there are typically more houses available on the market, as sellers in property chains are eager to complete and move into their new homes before the summer. This makes it a good time of year of buyers to look around to find your ideal property.
Conversely, numbers tend to drop in the summer and winter, so your options may be more limited. However, there could also be less competition on the market in terms of buyers, so you may be able to secure a better price for a property you take a shine to.
What are the current mortgage rates?
Mortgage rates vary across the market, with every lender setting their own rate. Currently they are also fluctuating due to ongoing rises in inflation, which can affect homeowners with variable rate deals.
The mortgage rate you are offered will also be heavily influenced by your current credit score, which serves as a risk indicator for the lender. The lower it is, the better the mortgage rate you are likely to be offered. This goes back to our point above regarding your finances, so you should request a free credit check report and check if there are any outstanding historical issues that can be resolved.