Is 2017 The Right Time to Buy Your First Home or Move On?
In 2015 house prices in Newton Abbot rose on average around
4.5%, broadly in line with the previous year. The number of resale homes which
changed hands over the course of the year was similar to the previous
year. A good year overall for the local property market with the prospect
of another good year to come. The amount of new homes being built and worries
over Brexit seem to have had little effect on sales of pre-owned property. On
the other hand changes in SDLT (stamp duty) and the tax treatment of mortgage
interest on buy to let properties does appear to have cooled the amateur
investor market. Professional investors however still seem keen to buy and
accept the additional costs associated with purchase and finding ways around
the tax treatment on interest, by for instance the use of limited companies.
There also seems to be demand for larger properties which can be divided into
high end multi occupancy home.
Ashley Mathews of Coast and Country estate agents reported
that the number of new enquiries from sellers peaked in June and October. Sales
peaked through October and November leading to numerous completions in
December. It was great to help so many people move to their new homes in the
run up to Christmas. As the year progressed he found that the number of sales
above £500,000 increased and he considers this very positive when considering
the outlook for 2017. The average property price in TQ12 is currently £249,000
and he forecasts that this will increase by a further 4% in 2017 to £260,000 as
demand for quality properties still outstrips supply. In particular he foresees
growth in sale of luxury homes. Buyers with deeper pockets seem to have been
sitting on the fence for the past couple of years but now seem to be motivated
to take the plunge. He puts this in part down to the slowing of price increases
in the London market. London sellers are realising their assets and buying in
the South West where their money goes much further. Coast and Country are able
to tap into this market utilising their network of associated offices inside
the M25 and have already agreed one sale at over £750,000 this year.
Ashley noted that an interesting feature of the current
market was the first time buyers. Some are older than you would traditionally
imagine, due to the need to save up deposits. Others with the assistance of
older family members are buying more substantial properties with larger
deposits than you would expect. These buyers are often seeking properties from
£100,000 up to £240,000 and provide an excellent starting point for
chains allowing others to move on.
When asked if 2017 is the right time to buy your first home
or move up the ladder Ashley confirmed that with the right advice and planning
he believes it is. There is plenty of activity in the market and mortgage rates
remain low. His opinion that in the medium term mortgage rates will rise making
the cost of home ownership more expensive. Taking advantage of long term fixed
rates and buying now before house prices rise further may well leave you
sitting pretty in the home you want. Delaying may mean paying more and a higher
mortgage rate.
He advised that the first step on the road to moving is
establishing the value of your current home. Taking advice on presentation and
whether to carry out works which could add value at an early stage may also
lead to maximising the amount you put in the bank. Coast and Country are there
to help even if your plan to sell is not imminent. They are happy to meet with
you, offer opinion on the current value of your home and the best way to market
it. They can also advise on how to maximise its appeal and help put a plan in
place to get you moved at the best time for you. All at no cost to you and
without obligation. They invite you to take your first step today and phone for
an appointment on 01626 366966. They look forward to meeting you and putting
their experience and local knowledge at your disposal.
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