Buying a Home in the Coronavirus Climate

What Impact is Coronavirus Having on Future House Buyers?

The Coronavirus lockdown has inevitably brought viewings to a halt and the supply of fresh properties on to the market have clearly dried up for now.  Having said that, virtual viewings should be freely available as more and more agents set up virtual viewings online.  This approach may seem unsatisfactory to potential buyers but it does offer some great insights into the charms of a property. Such research into the property market and the choices available are never wasted as it is all useful information.  It all helps in coming to that final buying commitment.

If you are aiming to buy a property once the current lockdown is relaxed then you can still work to put yourself in as strong a position as possible by protecting any savings/capital you have put away for a house deposit or investment purposes.  This will be critical for anyone looking to buy once lockdown restrictions are lifted should you be fortunate enough to hold on to existing cash.

If you are unable to count on a financial cushion to start your property purchase off there are some points to consider depending on what type of buyer you are:

 

1. First Time Buyers

Monitor the official announcements so you do not miss opportunities relevant to the housing market.  It is very likely that the government will develop and implement first time buyer 'help to buy packages' to boost the market for first time buyers.  Since first time buyers help make the property market move the government will be under pressure to provide support for the first time buyer.  The nature of the support which could be available will be dependent upon the banking community's reaction to the economic climate in general.  The mortgage terms they are prepared to consider will change to adapt to the climate.  In the meantime, do everything you can to secure regular and sustainable income at a level compatible with funding a realistic mortgage.
 

2. Property Developers and Investors

Developers and property investors generally work to stay ahead in the peaks and flows of the ever changing property market.  The Coronavirus climate will be no different than any other economic downturn.  As such, the prepared property investor will already be protecting their cash and monitoring the market, assuming they are in a strong enough position to do so.  Savvy investors in property will be in a strong position to take advantage of any slowdown and be able to buy before an upturn is seen.

Investors wishing to become landlords, or current landlords looking to increase their portfolio, are advised now is the time to dive in.  Some already struggling landlords may see the current situation as the final straws and be ready to bail out.  It is likely, therefore, that the property market could see an increase in property portfolios at reduced prices.  

Property to let is still very much in high demand with rents holding their own.  The smart opportunist who gets it right could make a sizeable profit whilst the world responds to these uncertain times.
 

3. Homeowners Looking to Upsize

Moving can be very expensive at the best of times so we would advise upsizing home owners:

• first consider whether the move is really essential in the first place.
• consider extending to accommodate an expanding family.
• to bear in mind that all things are relative - if your property value has decreased then the likelihood is that the new property will also have decreased. 
• to maximise the appeal of their property.  By using time at home to make improvements upsizing homeowners can ensure their home is looking its best giving potential buyers no reason to negotiate hard.
• that if the property you are looking to move to is higher in value and, like your's affected by a downturn in house prices, then it will have similarly decreased by the same percentage.  This means, in theory, the final selling price will be reduced for any the ongoing purchase.

 

4. What About Homeowners Looking to Downsize?

This scenario works very similarly for downsizing homeowners as for upsizing but in reverse.  This means that if your new downsized home has reduced in value by say 5% your current home would have devalued even more in money terms. 

Therefore don't:

• move unless absolutely necessary.  Wait and monitor the situation.
• ever rush into any decisions when buying or selling at any time (even during these very unusual times).

 

This is the best advice anyone can possibly give to someone considering a property purchase right now.  Moving house is one of the most stressful times in a person’s life at the best of times.  It is literally life changing in a good way but you need to be 100% confident in the move all round in both good times and bad.

Please remember to support the NHS workers who are risking their own lives on a daily basis to help us. Stay safe all and be kind to everyone.  We are very much #allinthistogether.  We may not all be in the same boat but we are very definitely in the same storm.  The things that matter most is how we treat one another.

Sheridan Sales and Lettings are happy to offer free advice to any tenant or landlord during the Coronavirus outbreak.  If you would like to learn more please do give us a  01366 858228 email us on sales@sheridanestateagents.co.uk