Full Brexit Interview with StrayFM
Property expert Alex Goldstein is interviewed by StrayFM on Brexit and what it means for the property market. Plus what is the underlying message on what to do if you are buying or selling property
Full Brexit Interview with StrayFM
Full transcript below:
Alex: The general message is not to panic, and it is very easy to buy into the media frenzy shall we say at the moment. Everyone knew that there was going to be some short-term turbulence and the stock market and sterling re going through some adjustment, as you seen, fine, fell off a cliff on Friday which everyone expected, it’s bounced back a bit but yes fine there’s still uncertainty out there, but you’ve got to hold your nerve. The world doesn’t stop spinning, you’ve got to keep on going and I think the key message is to turn what some people perceive as a negative situation round into a positive, make the most of it and embrace the possible change ahead.
Lisa: You sort of getting in touch with any clients already or any sort of reaction?
Alex: Yeah, again I think it’s trying to instil confidence. I have had an instance where by my client who was selling their property got gazundered, so in effect the buyer held them over a barrel and just said well we’ve lost confidence in the market and came in with a substantial price reduction. My advice to the client was actually don’t accept it and move on, which indeed they’re doing, and we’ve already got some other answers. So, as I’ve said locally, Harrogate, the Golden Triangle property market where we’re very well insulated, look back dare I say to the downturn of 2008, our prices faired very well indeed I comparison to the rest of the country. I still say that’s going to be the case no matter what happens, and I just think we need a good couple of weeks under our belts and I think then everything will start to simmer down, and again people’s confidence will come back and the world starts moving again.
Lisa: What would be your advice then leading on from that, to anyone who is thinking of buying or selling at the moment? Your advice would be then just to keep going?
Alex: Personally, I think it’s a case of keep on going. I think prices will hold firm and there are some great opportunities out there. You’ve got to remember that the whole property market revolves around supply and demand. There are always people that need to buy and there are always people that need to sell and its going back to those basics and almost ignoring slightly what’s going on out there in the EU at the moment, because we’ve got to remember this whole process of the withdrawal from the EU we’re not just, I think a lot of people making a mistake thinking this is going to be we’ll flip a switch one day and the next day we’ve got a completely different set of circumstances. It’s not the case. This is a minimum of 2 years at least of very gradual we’re getting out of this. As I said at the beginning, turn what could be perceived as a negative into a positive. Now if we look at say the mortgage market, there is already talk that the bank of England may reduce interest rates down t quarter of a percent. If they do that then in theory mortgage borrowing, getting money is cheaper. If you’re looking to buy well away you go, if possibly prices revise ever so slightly you’ve got the ability to jump further up on the property ladder, there’s £250 billion worth of funding set aside to try and keep the market stable. If we’re leaving the EU there’s legislation bound in the current mortgage lending. If that goes, which it will eventually then all of a sudden, our mortgage market again becomes much more free, you’ve got the ability as a buyer to jump up not just one rung on the property ladder but up a couple. Again, use it to your advantage, line yourself up, get yourself into the best possible buying position. Sellers present it, use your marketing to its best possible means and judge each buyer on their individual circumstances.
Lisa: And do you think we’re in quite a good position here in Harrogate because there is always the lack of housing in this area and it’s a very desirable area, so do you think we’re you know we’re in a very strong position?
Alex: Absolutely, it goes back as you correctly said Lisa to the whole supply and demand ethos at the moment. Up until now supply has been relatively weak but demand has been very strong and that is the key and that is what’s kept prices strong and that’s what happened back in the downturn in 2008. There’s again you’ve got Leeds and Manchester and York and Harrogate, you’ve got these real sort of northern power houses close by, those aren’t going anywhere overnight so again I see that we’re very well insulated from the storm, hold your nerve let a bit of time elapse and I’m sure that we’ll come out of this absolutely fine.