Bruce Rae Property Management

Time to Buy

If you have been thinking about buying a property in Edinburgh, now is a  good time to consider it further.  Property supply (at long last) now outweighs demand.  As always, location is key, which is why Edinburgh property, in the right location, still holds its value.

Beyond the right location, prices may drop or properties may not sell.  A factor behind the current slowdown is the larger deposits required when securing a mortgage.  Local buyers just don’t have that amount of cash available.   So, if interest rates come down and lenders return to offering attractive mortgages, the broad property market will bounce back.  Two big ‘ifs’.

Recently, I have encountered rare events in the Edinburgh property market.  In some prime locations, I have seen the valuation coming in higher than the actual price paid.  I have also seen buyers offer for properties and then pull out because their mortgage deal has been cut or they haven’t yet sold their existing property.

I experienced the same events in the early 1990’s; a great time for expats to have bought.  Buyers were able to put down large deposits and take say a 60% loan.  The difference between then and now is that rental yields are low at about 3%, but capital growth on an Edinburgh property is still solid, provided you plan to hold for at least 5 years.  This enables the expat buyer to purchase an Edinburgh property at an attractive price, which can then be used in later years, or can be sold to buy that larger property to return to.

The Edinburgh property market is now offering variety at realistic prices!!

Article by Elspeth Rae, Partner – BruceRae Property Management

Email:  elspeth.rae@brucerae.co.uk