As a crew member on a superyacht, navigating the property market can be challenging, especially in uncertain economic times. Recent changes in the financial landscape, particularly the Bank of England’s base rate reductions, have sparked questions about whether house prices are on the rise. Here’s what you need to know and consider before making any property-related decisions.
The Current State of the Property Market
The property market began to show signs of life in July after a period of stagnation, spurred by various economic and political factors. The most significant shift has been the drop in interest rates to 5%, marking the first decrease since the onset of the COVID-19 pandemic in March 2020.
Despite this, mortgage rates remain considerably higher than pre-pandemic levels, which presents a challenge for homeowners looking to refinance. Many could face higher costs than they would have in the past, leading to a potential increase in the number of people selling their homes or moving within the market to avoid future rate hikes.
Increased Affordability and Buyer Activity
With lower interest rates, affordability for higher-value mortgages improves. This is likely to bring more buyers into the market with greater spending power. Additionally, some homeowners may choose to sell and downsize rather than remortgaging at these higher rates. This combination of factors could lead to increased activity and optimism in the property market as people move to capitalise on the current financial conditions.
House Price Trends: What to Expect
According to recent data from high street lenders, the average property cost in July 2024 was £291,268, a rise of over £2,000 from earlier in the year. This marks a 2.3% increase in house prices compared to the same period last year, indicating a general upward trend.
This upward trend could mean…
As 2024 progresses, we’re potentially leaning towards it being a seller’s market, making it an ideal time for those with assets to consider selling. Property prices are on the rise, and while mortgage rates have dropped slightly, they remain high compared to pre-pandemic levels. This creates a perfect scenario for selling at a good price and offloading an expensive mortgage. By selling now, you could re-enter the market in a year or so when mortgage rates are expected to drop further and prices level off. Alternatively, investing in other assets could be a savvy move which could set you up nicely!
Will House Prices Continue to Rise?
While it’s impossible to predict with certainty, the outlook suggests that house prices will continue to rise if interest rates on mortgage products and the Bank of England base rate continue to fall as anticipated. However, this will depend on a range of economic factors, and it’s essential to stay informed and consider your personal circumstances.
What Should Superyacht Crew Do Next?
For superyacht crew members considering entering the property market or making changes to their current property investments, it’s crucial to stay updated on market trends and seek professional advice. The landscape is shifting, and opportunities may arise, but so too can risks.
Need Help Navigating the Property Market?
At CrewFO, we are here to help superyacht crew navigate these financial decisions. Whether you’re looking to buy your first home, refinance, or simply need advice on your next steps, our partner offers expert guidance tailored to your unique situation.
If you’re a CrewFO member, and would like further support, log in and reach out!
If you are not a member, below are our contact details:
Email us at: hello@crewfo.com 📧
Call us on: +44 203 538 8622 📲
At Crew Family Office, we are here to help Superyacht crew navigate their finances and make the right decisions.
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