Home or nest egg?

Chesterton’s Docklands sales manager Cory Askew feels potential purchasers are starting to get jumpy as time drags on their transactions and many even pull out after doubting the quality of their deal.

He said: “Buyers will negotiate enthusiastically in the hope of justifying their purchase in the current climate and grabbing a bargain.
“When the offer is then accepted, the buyer is sometimes surprised at how easy the negotiation was, which can trigger a sudden lack of confidence.
“They begin to wonder if they should move ahead with the sale or if they can get an even lower price.
“Most often this is happening with the very people the banks are keen to lend to, low risk, high deposit and high earning individuals. So it’s not that buyers can’t buy, it is that they won’t.�

Estate agents have observed that they are rarely approached for a home. Instead buyers ask about investments, and details such as how long the client has lived in a property are often overshadowed by talk of the next up-and-coming areas and when to buy.

This mindset often causes would-be buyers to let go of a beloved property for financial reasons.

Tower Bridge sales manager Carl Davenport said: “I am not saying it is for everyone, but in the UK we have become obsessive about how much our home is worth in monetary terms rather than how much it is worth in emotional terms.
“The most rewarding sales are to buyers genuinely looking for a home rather than a property as an investment.
“This type of buyer has an emotional attachment to a home, they see it and they want to make it theirs.
“The good news is that this type of client usually ends up with the best investment of all.
“Over the long term property is a solid investment and we often overlook the buying-to-live-in aspect of the market.�