Posted by Allison on 1 April 2009, 16:28
So the economic crisis rumbles on, with house prices tumbling, businesses falling, jobs going and even our national currency having a rough time of it. But can we look for any good points to this debacle? For example, can some people actually start thinking of getting on the housing ladder for the first time ever?
There is certainly a distinct possibility of this, since the over inflated prices that were being attached to properties all over the country are now falling. The question is how secure people would feel in investing in property in the current climate.
After all, if your job wasn't secure, the last thing you would want to add to your monthly outgoings would be a mortgage payment. And yet if property prices continue to fall as they have been doing, this might just be the best time to invest in bricks and mortar. The trick of course, is to gauge when the low point will be, and get the best bargain you possibly can.
But of course one eye should always be on your circumstances. While you could reasonably say that some jobs are safer than others, many employees are getting nervous as every single day brings more news of other businesses that have been downsizing in the current climate.
If you are thinking of buying your first property in the near future, the best thing to do for the moment is to make sure you erase as many debts as you possibly can, and build up your savings. By doing this you will be able to save as much as you can towards a healthy deposit. And with banks still a little nervous when it comes to lending people money, the more you can show them in return the better your chances will be.
This article on the First Rung Now website - looks into this situation in more depth, and makes for a very interesting read.
The key aspect to remember is that while prices are coming down, it is still a big decision to make. You need to consider every single aspect of your own personal situation before you think about buying a property – and while that is always the case, it is even more vital at the moment.
It can also help to try and find out how your own company is doing as far as your income is concerned. If you hear rumours that certain jobs are going to go or your own job may be in jeopardy, then you should see if you can either find out more or sit back until you do know for sure.
The worst time to buy is when you are in a state of flux over your job, whether that is real or imagined. And with housing prices set to go lower and more jobs bound to go, it may well be best to hold off a little longer and build up a reserve of cash before you seriously consider splashing out on a property of your own.
This is a tentative time for many people who have had their eye on the housing ladder for a while. That first rung which seemed so inaccessible before is getting a little closer, so who can blame them for being more eager to get on it?