The online version of a major UK newspaper has published a question and answer piece about buying and selling a home. A young man raises the question about buying a home, but not for life. He wants to buy a flat in London, then sell it later when he wants to settle down and start a family. He is concerned about a crash that could make it impossible to sell his home at a profit. The response is that a real estate crash in London is unlikely, and he should be able to buy and sell his house within five years.
Key Takeaways:
- some research by eMoov.co.uk, suggests that you wouldn’t be out of pocket in five years’ time and unable to sell for a reasonable price.
- So if you bought a flat now for £300,000 and there was a similar crash to the one in 2007, your flat would still be worth £300,000 after five years and possibly a little bit more.
- In addition, if you did buy now and put your rent money towards a mortgage, in five years’ time, the amount outstanding on the loan would be less than when you took it out
“Using historical data about the 2007 house-price crash and the time it took for prices to recover, eMoov.co.uk has worked out that if there was a crash today, it would take on average seven years and seven months for prices to recover to their current level.”