Tag: Buy

As the second wave of Covid19 affects lives, Durrants MD Dominic Parravani looks at what it augurs for the property market.  

One thing that has proved to be resistant to Covid-19 is the property market, which has fed off the pandemic.  If anything the spring lockdown acted as an incubation period for the market, as Coronavirus fuelled people’s desire to move to larger homes, often in more relaxed locations.

Now we are moving into hopefully a shorter second lockdown the question is, what will happen to this bull market?  

The answer seems clear. Whilst we all know that these conditions can’t last forever, the early signs are that these second-wave precautionary measures will only act to fan the flames of the current market.  

We understand now that during lockdown would-be buyers weren’t idle. Far from it; they were actively watchful. Once lockdown ended these buyers, armed with knowledge, stimulus and the freedom to act, broke out. The market became a feeding frenzy. Now, just as the national lockdown acted as an incubation period, the latest round of measures should do so again. But this time there will be added stimuli.  

Completion by Christmas is often the aim when buying or selling property in the autumn. But now there is another target date: March 31st. This is the day the stamp duty relaxation measure is due to end. Buyers will be racing to complete purchases by then to avoid extra expense – money they could use for a deposit or for improvements to their new home.  

Of course the Chancellor may postpone the cut-off date, or best of all discontinue the unpopular and opportunistic windfall tax altogether. But if he does neither strap yourself in – it’s going to be a hectic five months.  

If there is one thing we learned how to do during the initial lockdown it was to work successfully in a highly unusual and demanding property market. Now we will take that experience and do so again, making sure that our buyers and sellers can move, not just when they want to but also when they need to.

Dominic Parravani of Durrants has some thoughts for property buyers and sellers who wish they could see into the future.
 
Don’t you wish that just once you could have a sure fire tip about the perfect time to buy and/or sell an investment?
 
If only you or your parents had known to invest in a small Californian computer start up company called Apple in 1976. An £800 investment then would be worth over £30 billion today.
 
Finding these tips and then acting on them is the stuff of legends. But it is still possible to do the right thing at the right time by listening to the right people.
 
For example, a good estate agent with great local knowledge knows exactly what is happening in the property market. So, if you are thinking of buying or selling your home, a good first move would be to get the best local advice.
 
And what would we, at Durrants, say if you asked us about the market right now? We would say that, following lockdown, we have not seen as buoyant or active a market as this since before the great recession in 2007/8. We would tell you that properly priced property is flying off the shelves. But we would also tell you that the property market is cyclical, and that sometime after this scramble to buy and sell is over, the market will eventually cool – it always does. It cannot stay like this forever.
 
Finally, we will tell you that now is as near perfect a time to buy and/or sell a property as you are likely to find, and that periods like this only come round every ten years or so. Plus, this time, there is Stamp Duty relief for many home buyers, and the lowest mortgage interest rates in history.
 
You’ll be pleased to know that we don’t charge for insightful property advice, and while we might not be able to turn £800 into £30 billion for you, we can help you make the most of what is probably your most financially valuable asset.
 
So, go on, make a legendary move…