Should I buy a property now or wait for 6 to 12 months and then buy?
According to the IMF, we are in a recession. Property prices are predicted to fall another 10% at least over the next 12 months. I can see them falling further and for longer. House prices have been overvalued for the past 4 years. What we are now seeing is a correction in the market where the prices will fall back to an affordable level. They became so expensive that people on average wages were unable to buy a house. The knock on effect of this was companies in the more affluent south east and other parts of the country were unable to recruit staff because the employees could not afford to live in these areas. I would put your money in a high interest account for at least until 2010. Forget any idea that the housing market will suddenly pick up where it left off and prices will start to rise again. We will not see that happening again for years, if at all.
