Go Out and Buy a House, This May Be The Best Time!

For the vast majority of people buying a property for a home will be the biggest financial decision they will ever make, and also the best one. It does seem to be more of a "British" thing than a European one though as a far higher percentage of Europeans are happy to rent their homes and don't see owning a property to be as important as the British do. Sometimes in periodic downturns in the market some people start to wonder if this concept is flawed but just by looking at a few facts we can easily prove that this is not the case.

Property consistently increases in value. This is an indisputable fact! Property in the UK shows an average 5% increase year on year although there are some 'dips' in the market there are plenty of surges too! If you put a 5% deposit down on a 150,000 property then you have spent 7,500. That house is like to go up between 7,000 and 8,000 in a normal stable year. If you could show a Stockbroker a virtually surefire way to make 7/8,000 from a 7,500 investment on the stock market year upon year he would probably bite your arm off to get to it.

Consider putting 15,000 into your stockbroker's hands and him getting a 5% gain for you which most would consider to be ok. Your profit would be 750. Compared to the average property increase figures previously mentioned it's not too hard to spot the better investment and this is just for an average year. There are periods when we are having a property boom (every 7/8 years or so) and some properties can practically double in value in the space of a couple of years.

There will always be blips and temporary downturns in the market. These are always caused by other economic factors such as Government Policy, Oil Prices, what our American Friends have been up to, etc. This could be difficult for new homeowners who may be stretched a little but if you're an established home owner then you just don't try to move during these periods and wait for the good times to return.

Looking at investment over a medium to long term situation if you had invested 10,000 in the stock market in 1996 your balance would stand currently at around 22,400 which is a profit of 12,400. A typical house in 1996 was approximately 70,000 and that house would be worth 120,000 or more today. Time and Time again the property market shows itself to be the best and most consistent investment in the medium to long term.

The beauty of the property market is that home values tend to increase more or less steadily over the period of time. There are spikes and troughs but these are nowhere near as dramatic as those when you are dealing with stocks and shares. It is a true fact that the housing market has NEVER yet failed to recover from a slump in prices. The British attitude to owning property will always ensure that this remains constant.

As the property owner goes through life and their careers they can upgrade their property at the right time and this can mean their investments can be Tax Free. Profits form a house sale ploughed into a larger house purchase are very ofetn not liable ofr Capital Gains Tax which is a really BIG bonus!

Now could be a good time to buy a home as there will be some people who will be prepared to reduce their asking price to get the sale they need. Don't be put off by all the gloomy forecasts around at the moment, the property market will bounce back when the time is right just as surely as the moon will rise tonight. Make sure you get the absolute best mortgage deal you can find. There are lots of different options for mortgages out there and too many people do not take the trouble to look around sufficiently.

As the economy takes a bit of a slump if you find your finances are getting a bit difficult to handle then a good option is to consider a debt consolidation mortgage. Your monthly outgoings can be significantly reduced by taking this option as opposed to paying other high interest loans and credit card balances.

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