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It surprises me how many people don’t realise that when property prices are falling, it can be one of the best times to trade up. You will need a decent amount of money for a 25-40% deposit, but even if you don’t have this, the Help to Buy Scheme might be able to subsidise your next purchase. |
TopTip One - Be realistic about the value of your current property
When I work with people wanting to buy a new home, they often work out what they want first, then price their own property based on what they need to be able afford the new one! Unfortunately that’s not the way buyers work – they want the best deal they can, as I am
sure you will when you buy.
Top Tip Two - Be realistic about what you can afford
Selling your property for the highest price and buying your next one at the cheapest price is usually a recipe for a disastrous move. Make sure you thoroughly check the equity you have in your property and what mortgage you can raise as well as any support you can secure from
the Help to Buy Scheme
If you have a specific type of property in mind, know what you are willing to compromise on from a location perspective as this can make the difference between you getting the home you want or having to change your spec part way through your search.
Top Tip Three - Get your selling legals done first
It is vital that you get yourself organised and prepared to sell and buy. To make life a lot easier, get your contract for sale ready even before you find a property as when you do, you can concentrate on the legal implications of the property you are buying, rather than worrying which side of the garden you are responsible for and where the stop cock is!
Top tip four - Consider selling then renting
On several occasions, particularly if I am looking for a home for the long term, I will sell my current property, then move into rented accommodation or on one occasion I even went back to live with mum and dad!
It puts you in a great position to negotiate on price, or be first in the queue for a property you love that lots of other people are also after.
Top tip five - Make sure you can afford the property long term
With interest rates so low at the moment it is easy to be lulled into a false sense of security about what you can afford. On average, mortgage rates ranged between 5-7% prior to the credit crunch. Currently they are around 2-5%, so a lot lower. If you trade up, can you afford the mortgaging doubling overnight? If you get support from the Help to Buy Scheme can you afford to re-mortgage, pay off the loan or pay the additional interest you will owe once the support ends?
| For more expert help on trading up, sign up for FREE to download Chesterton Humberts Trading up checklist. | xxx |  |
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