Certainly anyone fortunate enough to have a “portable” tracker mortgage would do well to consider moving up the property ladder if at all possible – for several reasons.
Firstly, the interest payments on your mortgage are likely to be about a third of what they were at their peak 18 months ago (eg typical tracker mortgage at 2% above a 5.5% base rate at that time is now just 2.5%).
Secondly, the value of more expensive properties will, in cash terms, have dropped much more than the value of your property. So buying now enables you to get much more for your money. Do so while you can!
Thirdly, as property has always represented a good long-term investment, any appreciation on your new purchase in the future is likely to escalate more than on your existing property simply because it more valuable to begin with. Positive gearing!
Finally, if our own activity levels are anything to go by, the fall in property prices has nearly bottomed out. As Warren Buffet, the world’s most successful investor ever, says “if you can buy within 10% of the bottom, you’re doing well”. Additionally, sellers are more likely to be open to offers when they believe the market will fall further, but harden their stance when they hear that the market is turning. That time is not far away.
