Monday, 20 June 2022

Six Mistakes To Avoid Making When Selling Your Property


Over pricing

In 2018 Zoopla analysed the data it had on the initial price properties were listed for and their final sale price and discovered that properties that were overpriced can take two months longer to sell than properties that start with a realistic sale price.

One of the key filters on property websites is price so if your property is overpriced fewer people are going to see it and those that do will be comparing it, likely unfavourably, to others in that price bracket.

Inevitably you will have to lower your price as your property remains unsold. Buyers however, are keen to see properties that are new to the market as they believe that there must be something wrong with properties that have been on the market for a while.

Over personalised

You are selling your buyers their future home. If you have covered the walls with posters or personal photos consider taking them down. That way buyers can see the potential of a room without being overwhelmed by the sight of your personal belongings.

Neutral tones

When you put your property on the market you need to remember that if your taste is rather eccentric it can delay you selling your property and maybe even lower the price you eventually get for your home. Buyers like properties that they can put their own stamp on. If you have any particularly garishly decorated rooms do consider redecorating in neutral tones to increase your chances of a quick sale.

Take children and pets out

Potential buyers want to be able to look around your home in peace. Being trailed by children and pets, especially if they are allergic or terrified of your four-legged friends, can not only make them feel uncomfortable but will also ruin their opportunity to look at your home properly.

Clean and declutter

Dirty houses immediately make a bad impression and clutter can make even a large house feel claustrophobic. Take some time to declutter and clean your house. Cleaning windows can increase the amount of light entering your home, if it is evening turn on your lights to create a warm glow. Making coffee and baking bread during viewings are a cliché but the smell of furniture polish and fresh flowers are an easy way to make a home feel loved and cared for.

Choose the right estate agent

Choosing the first estate agent who comes to value your home or selecting an agent simply because they suggested the highest price can lead to problems further down the line. Take time to ask several agents to value your home and discuss with them why they think your property is worth the value they have suggested. Ask for examples of other local properties that they have sold in recent months, the prices they have achieved for them and the length of time that they have taken to sell them. Reviews from past clients are invaluable when choosing an estate agent to trust to sell your property.


If you are considering selling your property in Warrington please give us a call on 01925 235 338 and we will be delighted to give you a free valuation.


Tuesday, 14 June 2022

May 2022 Market Report for Warrington


As we leave the Spring market behind and step into the Summer market, a brief look at what’s been happening over the last month in the property market shows some encouraging signs.

There are currently 197 properties available for sale in Warrington. Of these 197, 47 were new to the market in the last two weeks. The average price of properties in Warrington is £246,541 with the median price at £200,000.

Most of the properties available are in the £100,000 to £200,000 bracket. There are also 2 properties available that are priced at over £1 million. Properties in the £500,000 to £1,000,000 bracket sell the fastest, only on the market for an average of 33 days. Properties in the £200,000 to £300,000 bracket also sell fast, only being on the market for 46 days.

Properties priced at £100,000 and under, take the longest to sell at 323 days. This is similar to one-bedroom properties that have a median price of £90,000 and remain on the market for 350 days. This is important to bear in mind if you’re thinking of upsizing or selling an investment property. The timescales involved may be longer than you had first imagined.

Looking at the annual figures shows just how strong, and indeed unusual, the Warrington property market has been.

Properties around Warrington had an overall average price of £252,534 over the last year.

The majority of sales around Warrington during the last year were semi-detached properties, selling for an average price of £236,814. Detached properties sold for an average of £386,016, with terraced properties fetching £174,310.

Overall, sold prices around Warrington over the last year were 4% up on the previous year and 17% up on the 2019 peak of £214,923.

Checking the most recent land registry figures is interesting, albeit a couple of months behind as it refers only to completed sales. In March 2021, 40 detached Warrington homes were sold compared to only 4 last March. Semi-detached homes show a similar change from 54 to 19. Terraced properties sold 78 last year and only 16 this year.

This reduction is not a sign of a crash or anything so dramatic. It is merely a slowing and, hopefully, a sign of the market starting to correct itself. This should mean that demand and supply are more balanced and prices settle once again.

If you’re looking for further information about the Warrington property market, please feel free to contact us. If you’re thinking of selling or buying, letting or renting a Warrington property, please don’t hesitate to get in touch. You can call 01925 235 338 or email staff@hamletwarrington.co.uk.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page

Thursday, 9 June 2022

The 6 Reasons Warrington Rental Properties Could Inflation Proof Your Savings?


  • Inflation (and recessions) can be nerve racking for people and their hard-earned savings and wealth.
  • Yet there are six reasons which make investing in private rental properties a potentially wise investment in these changeable times.
  • This article looks at how investing in Warrington property could help you 'hedge' against inflation and protect your savings and wealth against the possible recession.
The cost-of-living predicament is threatening the budgets of many Warrington householders.

Inflation is running at 7.8%, yet the best savings rates in the market are only 2.75% (because of low Bank of England interest rates). This means that the value of people’s savings is falling fast.

To add insult to injury, the possibility of a recession on the horizon could add another nail in the coffin of people’s wealth and savings.

Looking back at the last recession (ignoring the 2020 Covid recession), the Stock Market (FTSE index) dropped 40.1% during the Credit Crunch (2008/9) - scarcely a soothing thought if you worry about a recession looming in the next couple of years.

A recession can have a catastrophic impact on household budgets, as a weaker economy characteristically means that salaries drop, and people get made redundant.

So, why do I suggest Warrington rental properties will help to
protect your wealth and hedge against inflation?

Warrington rentals aren’t perfect, yet in many ways, they go a long way to help – let me tell you why.

1. One of the most significant benefits of investing in residential property is to hedge against inflation. An ‘inflation hedge’ is an investment that defends against the decreased purchasing power of your money that results from the loss of its worth/value due to inflation.

The last time the UK suffered high and persistent inflation was the 1970s.

In 1973, the average British house was worth £9,942. In 1980, that same house was worth £23,287. If the same £9,942 had been invested instead in the stock market in 1973, it would have been worth £19,384 in 1980. 

So how did that compare to inflation?

Neither property nor the stock market beat inflation in those seven years (as the goods and services of that £9,942 in 1973 had risen to £25,897 by 1980).

But investing in the stock market between 1973 and 1980, that stock market investor would have lost 25.2% of their investment in 'real terms’, compared with only 10.1% for property investors.

However, there was the bonus of seven years’ worth of rent!

To give you some idea of what that would be worth in today's figures (even if the rent didn't go up during that time frame) ...

The average Warrington landlord will earn £70,728
in rent over seven years.

2. Rental properties have repetitive, regular monthly income, whilst dividends from the stock market are dependent on there being profits which, in a recession, can be hit and miss.

3. Existing Warrington landlords know that the rents their rental properties achieve don’t historically decline during recessions in the medium term.

In 2008, Warrington rents dipped by 5.2%, yet they soon
bounced back a year later.

And even if average rents do go down, every rent is fixed at the start of the tenancy. Also, it 
is infrequent for a tenant to negotiate a reduction in rent mid-tenancy even if average rents 
did drop.

4. Property prices sometimes fall during recessions.

In the 2008 Credit Crunch recession, Warrington
property values dropped 20.9%.

Dropping from £172,562 at the peak in November 2007 to £136,426 in February 2009 
(before they started to rise again).

Yet as I stated above, the Stock Market dropped 40.1% with the Credit Crunch. Also 
previously, the Stock Market dropped 36% on Black Monday before the early 1990’s 
recession and 55.3% in 1974.

Which sort of drop would you prefer?

5. (Almost) guaranteed rental payments. Insurance can be taken out for rental payments (you can’t get that on stocks and shares). Also, the government will cover most (or all) of the rent when someone is made redundant and needs to apply for social security.

6. For those Warrington landlords who take a mortgage, inflation can be a benefit. The first is the effect of inflation on mortgage debt. As Warrington house prices rise over time, it reduces the loan to value percentage of your mortgage debt and increases your equity. You will receive a lower interest rate when you re-mortgage in the future because of the lower loan to value percentage.

Also, as the equity in your Warrington rental property increases, assuming you fix your mortgage, your payments stay the same.

Finally, inflation also helps Warrington buy-to-let landlords because rents tend to increase with inflation. So as rents go up, your fixed-rate buy-to-let mortgage payments stay the same, creating the prospect of more significant profit from your buy-to-let investment.

Yet, there are downsides to renting.

Rent arrears can be a worry though. However, during 2021, landlords who used a letting agent were, according to an investigation from Denton House Research, 272.5% less likely to be in arrears of two months or more.

One of the biggest reasons is the more stringent tenant referencing that letting agents tend to do compared to landlords who do it themselves. At our agency, we like to reference tenants carefully for job security, stability, and any history of non-payment on rents, always liaising with previous landlords/agents to see if they were a good tenant.

That is why many tenants with a poor tenancy record are attracted to properties that are not through agents, as they know most (not all) DIY landlords don’t reference their tenants as thoroughly as letting agents do. Solid referencing is not a 100% guarantee you won’t get rent arrears or have your rental property trashed, yet it will go a long way to mitigate it.

One of the things about investing in Warrington rental properties is that buy-to-let investors have more control over their returns than stock market investors do. Buy-to-let provides long term stability and constant income to counterweight the massive swings seen in the FTSE stock market.

There is something reassuring about touching and feeling
your investment – the 'bricks and mortar’.

You must make your own decision when investing in the private rental market in Warrington. If you'd like to chat over the phone for five or ten minutes to discuss where I would be investing in the Warrington property market, don't hesitate to send me a message or pick up the phone.

How are you planning for the spectre of a potential recession?

If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page
 

Monday, 6 June 2022

Seven Things That Every Landlord Needs To Know

 


We have many years of experience looking after landlords and their tenants in Warrington and our experience has taught us that whether you are an experienced landlord or are just starting out there are seven things that it is very important for you to know.

1. Choosing the right agent

This is without doubt the most important decision you will make as a landlord. A good letting agent will ensure that not only is your property well looked after but that your tenants are too which will lead to less rental voids. Take your time selecting an agent, read their testimonials from other landlords and always ensure that you are happy working with them before going ahead.

2. The right price

All tenants are looking to rent a property for a competitive price and good tenants tend to have their pick of rental properties. A good letting agent can help advise you on the correct amount of rent to charge for your property. Remember setting the rent too high will likely result in a rental void while you are looking for a tenant so don’t shoot yourself in the foot by being greedy!

3. Have an emergency fund

It is wise to have some money saved to cover unexpected costs such as a new boiler or a rental void. If you do not have some money put aside to help you through a rental void you may feel under pressure to accept an unsuitable tenant just in order to have some rent coming in.

4. Insurance

Landlord Insurance is an essential when you rent out a property. It will typically include rent and legal protection so that you are covered for any legal disputes with your client and will also cover you for lost rent if your tenant defaults.

5. Legal obligations

There have been massive regulatory changes in the last few years. Small mistakes can have large financial repercussions so if you are finding it hard to keep on top of them, consider using a letting agent to manage your property to reduce the stress on you.

6. Buy cheap, buy twice

It is usually far more financially beneficial in the long run to buy good quality materials in order to carry out repairs/refurbishments instead of buying cheap ones that have a shorter lifespan and will therefore need replacing/redoing sooner.

7. Understand your tenancy agreement

Ensure that you have read and fully understand your tenancy agreement and have made sure that it is appropriate to both your property and your circumstances. A good letting agent will always be happy to answer any queries that you may have.

If you are considering renting out, or are already renting out your property in the Warrington area and would like some more advice or to discuss how we can help you to rent out your property please do not hesitate to give us a call on 01925 235 338.



Monday, 30 May 2022

What Not To Do When You Are Staging Your Home

Home staging is the process of preparing your home to be viewed by a potential buyer. The idea is that you are setting the stage so that people coming to view your home see it in its best light. It is not meant to be used to hide problems with your home, but rather to highlight the strengths of it.

There are a few big mistakes that people make when staging their homes. We have rounded up our top three staging don’t dos.

Worn out or outdated kitchens and bathrooms
Kitchens and bathrooms can quite literally make or break a sale. You may be trying to avoid renovating these rooms before you move because of the cost but potential buyers will also be wary of the cost of having to do up these rooms. Broken cabinets, tired paint and outdated appliances or bathroom suites can all ring alarm bells for potential buyers. They may even make them worry about what else in the property has been left uncared for. No amount of carefully placed plants or stylishly arranged pans can hide these faults so it is a good idea to tend to these before putting your property on the market.

Damaged Flooring
Rugs are great for pulling together the decor in a room or designating areas in a multi-functional room. They are, however, no good for hiding problems with the flooring. Most flooring issues can be felt under foot when walked over and using a rug to hide them can appear deceitful which will not impress a potential buyer.

Replacing your carpets may be an expense that you do not want to consider when placing your property on the market and rugs can, to an extent, help to make an ageing carpet look better but realistically they will not be able to completely cover up a tired or dirty carpet. If you really can’t afford to replace your carpets, having them steam cleaned can make a real difference.

Unwanted odours
No matter how immaculate or how well staged your home is, if it smells bad then that will be enough to put most people off. Lingering smells such as pet odour cigarette smoke or any other unpleasant odours are best dealt with before you start having viewings. Believe me, no amount of plug-ins or scented candles can truly cover up lurking smells and in fact can lead to a concoction of scents that is truly offensive to the senses. Choosing to have furniture, carpets and rugs professionally cleaned can be a very worthwhile investment if you are looking to achieve the best price possible.

When preparing to put your property on the market it is important that you look at it with critical eyes so as to identify any areas that need a bit of sprucing up or that could be enhanced with a little bit of staging. We know how hard it is to view your own home through impartial eyes so we are always happy to come out and give you our professional and tactful opinion.

If you are thinking of putting your home in Warrington on the market please do give us a call on 01925 235 338 and we will be delighted to assist you.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated articles of the Warrington Property Blog.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page

Friday, 27 May 2022

Spare Room? 5 Ways to Make it Work for You


If you’re fortunate enough to have a spare room in your home then there are lots of ways you can make full use of it, without letting it go to waste.

Unfortunately, spare rooms often become dumping grounds for all those items that haven’t found their place yet, or which don’t get used anymore but you can’t bear to let go of either.

If this sounds familiar, then clear it out and consider these five ways to make your spare room work for you.


1. Convert it into a Home Office


With more of us now working from home, turning your spare room into a home office could be just what you need, and it doesn’t have to cost a fortune.

All you really need is a basic desk or worktop that can be easily fixed to the wall and an office chair. That’s it. Of course, you can add filing cabinets, bookcases, shelves and anything else that springs to mind, but a work surface and a chair will be adequate to get you started.

The beauty of it is, it’s your space to personalise exactly how you want, and it’s far better for your posture than being curled up on the sofa with your laptop. It’s also a great way of separating your home and work life, with the dining room table going back to being the space where you eat, and the office being exclusively for work.

Thinking longer term, demand for properties with a home office has increased dramatically recently, so an office space could make your home more attractive to buyers if you plan to sell in the future.


2. Home Gym


This is probably the most expensive option on the list, but it’s also the most beneficial healthwise, and you’ll save money on gym membership over the long term.

You can start small and build up your equipment. Purchase a mat, a step, some dumbbells or kettlebells, resistance bands and a bench to start with, before moving onto bigger and more expensive equipment such as a treadmill, spin bike or rowing machine if there’s sufficient space.

If you use it regularly you’ll not only become physically fitter, but your mental wellbeing will improve too.

Having a gym inside your home will also help you avoid making excuses to exercise and ensure you start working on those fitness goals you’ve been putting off!

3. Rent it Out


If you’re looking for some extra income then renting out the spare room is the perfect solution.

There are numerous ways to do this and understandably many people are quite sceptical, so if the idea of having a stranger living in your home is too daunting then you could rent it out to a friend or relative for a few months first.

On the other hand, if the idea of a stranger staying doesn’t bother you then a lodger will give you a guaranteed monthly income. You could also advertise the room on a website like Airbnb and have different guests using it for shorter stays.

The downside of doing this is that you won’t know how much you’ll earn each month, as some months could be very quiet, but if you live in a town or city with lots of attractions and events happening regularly, then this could be the most lucrative option.

If you choose to rent out your spare room the Government’s Rent a Room Scheme allows you to earn up to £7,500 per year tax-free.

4. Make it Multi-Functional


There’s no reason why your spare room needs to have one sole purpose. Why not combine ideas to get maximum use out of it?

For example, you could have a home office with a sofa-bed and a TV in it. This way you’ll have a workspace combined with a snug or second living room, and a place for visitors to stay.

Or you could have an office, with a bar and a dartboard in it for after hours! There are countless possibilities and you can be as creative as you like, so let your imagination run wild.

5. Walk-in Wardrobe


Admit it, we’ve all watched one of those celebrity TV shows at some point and thought how cool it would be to have a room filled with all our clothes!

Well fortunately you don’t need to be a millionaire with a mansion to have this yourself, just a spare room and of course, a lot of clothes and shoes to fill it with.

When it comes to cost, you don’t need to fork out hundreds of pounds on new wardrobes and cupboards. Just some clothes rails and a few shelves will do the trick if you plan it well.

What will you use your spare room for?

Hamlet Homes Warrington are your local property experts for the Warrington area. Call us on 01925 235 338 or email manoj@hamletwarrington.co.uk to chat with a member of our friendly and experienced team.

If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page


Monday, 23 May 2022

Has the Warrington Property Market Peaked?


Should you buy now or wait for the bargains?
  • Many commentators believe we have seen the peak of the Warrington property market.
  • So, should savvy bargain hunters wait for Warrington house prices to fall?
  • Or could postponing your house buying for any anticipated Warrington house price drop be a costly mistake?
Over the last two years, the Warrington property market has been a rollercoaster ride of hyperactive demand together with the new sport of getting your offer accepted when you compete with 30 other bidders.

Yet there are clouds on the horizon that the
Warrington property market could be at its peak.

Bank of England interest rates have increased four times in the last few months to try and combat inflation. Meanwhile many Warrington households are finding it tough to counter the most significant drop in real incomes in a single year since records began in the mid-1950s, all at the same time as gas, heating oil and electricity prices are predicted to rise again in the autumn.

Hence why some economists are predicting house price drops in the coming 18 to 24 months of 3% to 5%.

So, surely this is not the best time to buy a Warrington property – and surely savvy buyers should wait for Warrington house values to fall?

Is it realistic to see double-digit national house price growth? 
Certainly not.

The question is how far the Warrington property market will slow and whether the slowing will drop into modest falls.

Let me look at household income first.

At best, the outlook is gloomy as real household disposable income is set to drop by 2.4% in 2022/23, the largest drop since records began in 1956. This is despite the £17.6 billion of financial support for British households revealed in Rishi Sunak’s Spring 2022 Statement with the National Insurance thresholds, energy bill support package and duty cut on petrol. Without these changes announced by the Chancellor, real household disposable income would have fallen by an additional 1% in 2022/23.


Second, as interest rates increase, mortgage rates will increase in line, increasing mortgage costs, so surely that will curtail demand, meaning Warrington house prices will drop, and buyers should wait to catch a bargain?

Finally, with inflation on the rise, the real value of people’s savings will decrease quicker, and the value of their deposits will diminish, meaning Warrington prices will surely drop, and people should wait to buy?

Surely the Warrington property market has peaked and
buyers should wait for the bargains?

Well, I don't think so, and these are the reasons why I say that.

I believe, subject to no significant shocks in the world economy, Warrington house price growth will be very slow in the next 18/24 months and go into low single digits (even the odd month dipping ever so slightly into the red), but not the 16% to 19% annual drop we saw in 2008/9.

Let me look at real household income. Every economist predicts 
growth in real household income in 2023/24 by around 1%.

If the two years are combined, the predicted effect on real household income in the next two years (2022/23/24) is a net loss of 1.4%, whilst in the credit crunch years 2010/11/12, the net loss was 2.7%.

I was looking at the increase in mortgage rates. 79% of owner-occupiers have fixed their mortgage costs and had their affordability stress-tested to Bank of England interest rates of 3% to 4% under the Mortgage Market Review rule changes in 2014. I believe the most significant impact of increasing interest rates will be at the point of taking on a new mortgage by first-time buyers (as opposed to servicing or the porting of an existing mortgage from one house to the next house).

The four successive Bank of England base rate rises, inflation and the rising cost of living are likely to bring more cautiousness over summer and autumn when it comes to people buying a property. Yet, there is still a massive imbalance of demand for property over the number of properties for sale to quench that demand.

The potency of the job market and the ongoing mismatch between the supply of properties (mentioned in last week’s article on the Warrington property market) on the market and demand for those properties will support property values.

Finally, the by-product of increasing inflation is that it makes buy-to-let more attractive. If there is a reduction in first-time buyers, this will be counterweighted by more landlords buying again, supporting the current level of Warrington properties.

But what if Warrington house prices do drop significantly?

So let’s assume that Warrington house prices do fall, irrespective of the reasons above, it will not inevitably help Warrington buyers.

If we have a house price crash, people tend to find their careers are at risk, and their salaries don’t rise as much. The younger generation (i.e. first-time buyers age range) often gets hit the toughest by recessions.

If first-time buyers wait until 2024 to buy and Warrington property values drop by 10%, that will prove more expensive.

In the last 2008/09 crash, lenders weren't offering 5% deposit mortgages. The lowest deposit mortgage that first-time buyers could get was with a 10% deposit and even then, they were hard to come by.

When writing this article, first-time buyers can obtain a 5% deposit mortgage for a fixed rate of 2.66% for five years.

The typical first-time buyer terraced house in Warrington
sells for £162,000.

So, if they were to buy now, on this mortgage deal, the first-time buyer would have to stump up a £8,100 deposit and their mortgage payments would be £563.47 per month.

Yet, let’s say property values in Warrington do drop by 10% in the next 18 months, the terraced house would now be worth £145,800, so a significant saving. Or is it?

Everyone believes interest rates will rise further, so let’s assume they go to 3% by the autumn of 2023. That means the mortgage rate for a 10% deposit mortgage will be in the early 5%’s, so let me assume 5.29% (because the banks tend to increase the gap between the base rate and the mortgage rate in recessions to allow for the extra risk).

The monthly mortgage payment on the 5.29% mortgage would be £686.72 per month, and you would need to double your deposit to £14,580.

So even if Warrington's house prices did drop by 10%, the first-time 
buyer would be £1,480 worse off a year in mortgage payments 
and would have to find double the deposit.

...and then there is the other cost of waiting.

You have two years’ worth of rent to pay. The average rent for a Warrington property
is £862 per month.

If you waited a couple of years for Warrington house prices to drop 
by 10%, you would spend £20,688 in rent.

Choosing to buy a Warrington property makes even more economic sense if it is a long-term choice, as homeowners can ride out any house price drops.

Homeowners who plan to stay in a property can generally rely on getting their money back within six to ten years whilst not paying any rent.

Will Warrington prices go up, or will they go down?

Remember, George Osbourne said house prices would drop by 18% in May 2016 if we voted to leave the EU, whilst many economists said they would drop by 5% to 10% when Covid hit in March 2020.

And we all know what happened.

If you think you will be better off owning your own Warrington home rather than renting one, don't bother to wait for the suggested house price drop that may never happen.

These are my thoughts, what are yours? Let me know in the comments.

If you are looking for an agent that is well established, professional and communicative, whether you’re buying, selling or looking for an investment opportunity, then contact us to find out how we can get the best out of the Warrington property market.

Email me on manoj@hamletwarrington.co.uk or call on 01925 235 338 – we are based on the Warrington Business Park, Long Lane, WA2 8TX. There is plenty of free parking and the kettle is always on.

Don't forget to visit the links below to view back dated deals and Warrington Property News.

CLICK HERE TO FIND OUT HOW MUCH YOUR WARRINGTON HOME IS WORTH FOR FREE
Hamlet Homes Warrington, your local Estate Agent
Follow my Warrington Property Market Blog
Hamlet Homes Warrington LinkedIn Page
Hamlet Homes Estate Agents Warrington Facebook Page
Hamlet Homes Estate Agents Warrington Twitter Page