Saturday, September 25, 2021

How To Climb Onto The Property Ladder In A Competitive Market

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Getting that hot property of your dreams is becoming harder and harder in London, as stock is scarce and there’s a lot of competition between buyers.
However, don’t despair – here are some fantastic tips on how to get ahead of the game when it comes to buying the home you’re looking for…
Build a great relationship with an agent
Make sure you have a good bond with a few estate agents in the areas you’re looking to buy in. This way, you’ll be aware of property before open days and they will be tuned in to your particular requirements. If they know you ‘re reliable, have a substantial deposit, a property under offer or up for sale if you’re a second-time buyer and/or can get access to a mortgage quickly and easily; they’re more likely to make you their first port of call when a suitable property comes on the market.
Securing a mortgage
Those hoping to secure a mortgage without any hiccups may be in for a bit of a surprise. The rules have changed, with the new Mortgage Market Review regulations focusing on ensuring that borrowers can afford the repayments. Three-hour interviews at the bank and in-depth analysis of daily spending habits mean that some eager property-seekers are likely to be refused, as they don’t meet the new requirements. Questions will include future plans for children or planned extensions – with some probing as personal as to how many times you and your partner (if applicable) eat out per week! Never fear, this is all just part of making sure you could meet interest rate hikes in the future. However, remember to also check out the best mortgage options available – it can be overwhelming when it comes to choosing with so many products on the market. Why not speak to a broker and get some advice?
Don’t compete for the best properties
As London property is in such high demand, often estate agents hold open days, which are fast replacing one-to-one viewings. This involves showing lots of people around, with some more unscrupulous agencies playing desperate buyers off against each other, in order to up the bids. This way, the choicest properties are getting snapped up quickly and frequently for well over the asking price. One good tactic could be to NOT compete for the most sought-after properties. Instead, look for the properties that are a bit more run down, not immediately appealing to the eye. In a good area, a slightly run down property that you can renovate and sell later if you need to for more money, is always a good bet.
Don’t panic!
In London at least, some buyers are feeling the pressure to buy the first half-decent option they see. With scare stories doing the rounds about the difficulty of getting on the ladder if you’re a first-time buyer and upgrading if you’re not, it’s vital not to panic. Often the media just reports the worst case scenario and doesn’t focus on the positives. Number one is to find a property you like and can live in, come hell or high water. Unless you’re looking for purely investment purposes – in which case there’s a different set of criteria.
Just keep reminding yourself what you’re looking for and stick to this. Good luck!

Thanks to LDG, an estate agents in the West End, for this guest post.

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Peter Black
Freelance blogger, main interests being real estate, property investment and green investments. studied in London, live in London, born in London. Chelsea fan!

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