Musings of a London Property Search Agent
The Confederation of British Industry (CBI) have revised their forecasts made in September, predicting a recession as severe as that of 1991, with a trough in the second half of 2009. The employers body expect the economy to contract by a further 1.7% and for unemployment to reach 9% leaving 3 million people without a job.
The Chief Economic Advisor to the CBI, Ian McCafferty has said that the picture has dramatically changed for business and clearly it will have an effect on property pricing. We are already seeing some superb buys so investors and home buyers can definitely find bargains if they want to buy now. Wise buyers will negotiate as significant a discount as possible – there is no exact percentage to aim for as the saleability of each property will depend on it’s desirability, plus points, location and the price at which it is offered but 20% – 34% discounts off the original asking price are no-longer uncommon and several new-build auction properties have sold recently for half their value a few years ago.
Of course no vendor will be keen to lose money and vendors who have overpaid, particularly those buying in the last 2 years will only be amenable to a price reduction which doesn’t fall beneath the price they paid. Buyers would be well advised to research the vendors in addition to any properties in which they are interested.
If you need help with a property purchase, call this London Property Search Agent on 020 7923 7564. We are waiting for your call.