Taking a look at the Aberdeen Solicitors Property Centre (ASPC) you many notice that there is a larger than normal number of “high value” properties on the market, homes valued over £400,0000, and particularly properties over £700,000, throughout Aberdeen and Aberdeenshire.
Since 1 April 2015 a higher tax has been payable due to the introduction of the Land and Buildings Transaction Tax. This additional cost of buying higher value properties, as well as the particular market conditions affecting Aberdeen and Aberdeenshire, such as a recent spate of jobs marked “at risk” and the announcement of redundancies in the oil industry have together had the effect of lowering demand for higher value properties. Properties in this category are taking longer to sell and achieving sale prices at valuation or in some cases less. Prices do however continue to remain relatively steady despite the current conditions.
However this article is not all bad news, at least not for everyone, since now could be an excellent time for some to “move on up” the property ladder.
Mortgage interest rates are at an all-time low, resulting in more first time buyers entering the market, looking for entry level properties to get their foot on the ladder and also resulting in more buy-to-let opportunities. Lower value properties, especially those that have been maintained in a good and tidy condition are still receiving good prices due to demand, resulting in this section of the market continuing to remain more buoyant.
Taking a snapshot then, with lower value properties faring better than medium and higher value properties, now could be the time to move on up the property ladder and benefit from the current market conditions.
There is a good chance that you could sell your lower valued property at a price above valuation and buy a medium or higher valued property at a reasonable price, at valuation or even less.