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Price of playing a waiting game |
| Monday, 14th November 2005 |
DON'T put off buying a home in the hope that prices will fall – instead they will probably rise while you delay. |
That's the message from mortgage lender Alliance & Leicester in a report published today. The bank says nearly three quarters of those who played the waiting game ended up having to pay more, rather than less.
A&L says around 21% of homeowners said they delayed their purchased because they thought property was overpriced, but 71% of these admitted they had lost out as a result.
In fact, the average would-be homebuyer waited for three years and 10 months before they finally bought, during which time the average cost of a home soared by nearly £34,000.
Those who postponed buying for five years faced an even bigger jump when they eventually decided to get on to the property ladder as the average cost of a home rose 87% to average £189,852.
Around 78% of people say they currently think property is overpriced, 15% of whom say they are delaying making a purchase in the hope that prices will come down.
The vast majority of people who are still waiting say they are prepared to put off buying for more than a year in the hope that prices will fall, with a third of these claiming they would wait for more than five years.
Among those who bought a home even though they thought property was overpriced, 11% said they had seen a considerable rise in the value of their property despite buying at what they thought was the top of the market.
Overall, 29% of people say they think house prices will fall in the near future, while 55% expect them to stay the same or increase.
Source: thisismoney.co.uk |
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