According to many analysts, the London property market may very well have seen better days. While we might not be looking at the worst-case scenario predicted by many opposed to Brexit, the fact of the matter is that prices could very well flatline in the coming months. As this can make selling a home or flat a bit difficult, some owners are turning to what is known as a part exchange property scheme. This article is an introduction to pert exchange property giving you the main things you need to know.
How do Part Exchange Property Programmes Work?
Put simply, part exchange property is actually quite similar to trading in your old car in order to get a discount on a newer model. This method essentially requires you to sell your home (usually at the current market value) to a builder. As opposed to paying the full price of the new home or flat, you will only be required to pay the difference between its value and the value of your previous home. This can be a great idea if you are having difficulty finding a buyer for your existing London flat. However, we need to point out that part exchange property solutions generally only revolve around new builds. So they could be great if you like the idea of living in a completely new property
How this Relates to the Construction Sector
Now, you might be wondering how a typical part exchange property scheme fits into the current housing market. If you have kept up with the news, you are probably already aware that the London construction sector has slowed since the Brexit. Less construction obviously means fewer opportunities. This could be a problem, but we also need to look ahead.
A recent study released by the Royal Institute of Chartered Surveyors (RICS) predicts that construction should bounce back by 2.5 per cent over the next year. While this may not be comparable to other times in the past, this recent slowdown has not been as severe as some predicted. Interestingly enough, a shortage of skills is said to be having an impact upon growth. Statistics aside, what is the best way to take advantage of a part exchange property in the near future?
Conservative and Realistic
First, be sure to have your property evaluated by at least three independent surveyors. This is important if you hope to have a realistic idea of the value of your home or flat. Then, speak to a handful of builders to find out what they are able to offer. Keep in mind that you may be forced to take a slight cut in the sale price. The good news is that this could very well be offset by avoiding estate agents and other middlemen.
The bottom line is to plan ahead and to be certain that the builder provides you with a fair price. Part exchange schemes can be invaluable tools if you are unable to sell your home through traditional methods. If the London real estate market improves as expected, you could very well be able to enjoy a great deal.