A Cornish independent financial adviser believes news that house prices have fallen by the largest margin for 12 years can be seen as positive for many of the counties first time buyers.
Peter McGahan, managing director of Worldwide Financial Planning, made the announcement after Nationwide Building Society published figures showing the average cost of a home dropped by 0.8% in November.
It’s the first drop in price since February 2006 and the largest from one month to another since June 1995.
The annual rate of house price inflation now stands at 6.9%, down from 9.7% in October.
“People who know me will know that I predicted a drop in house prices to happen,” said Mr McGahan, whose company has offices in Truro and Wadebridge.
“We’re in the midst of an economic cycle and with everything that has gone on over the last few months with interest rates, the credit crunch as a result of the US sub prime market, Northern Rock and changes to Capital Gains Tax, then it comes as no surprise.
“But, instead of focusing on the negative aspect I think that over the next few months, if this trend continues, it will present a fantastic opportunity to first time buyers in Cornwall.”
Mr McGahan believes that falling prices and changes to Capital Gains may encourage many of the county’s second and third-home owners to sell properties now, rather than lose out in April.
“I think people will be looking to maximise their investments so would make the move now instead of waiting,” said Mr McGahan.
“So I would think that over the next few months more properties will become available and more affordable.”
For more information please contact Peter McGahan on 0800 0112825 or visit www.wwfp.net
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