KingslandBarge wrote:
Mirth wrote:
All in all there's been an increase in house transactions and the construction sector has picked up this past month. In the worst case be prepared to hold your property for a decade but other than that this is as good a time as any. Waiting for the 'right' time could backfire - particularly over the long term.
Could you elaborate on what factors would press me to hold for the long term? I was mildly curious about flipping within medium term as some my friends spent the last 6-7 years doing this, almost every 18-24 months. Seemed better off for it.
If there's a correction in the market and you're stuck with negative equity then you would be looking to hold longer term. This is pretty much an inherent risk of buying property regardless of when and where you buy, pandemic or not.
I don't really know your friends circumstances but the rule of thumb is that you should be holding your property for 5 years before flipping it as that's usually the break even point once you factor in moving costs, solicitor fees, maintenance costs, interest payments etc. Obviously London is weird and some parts of London can see larger spikes than other areas due to new projects/upgrades (eg Crossrail). It's possible but I wouldn't buy a new property expecting to leave in 24 months as the norm. Not trying to put you off buying now, I know several people who've bought a place these past couple of months - just remember to plan for the worst, hope for the best. 🙂
