What does 'Trading Gap' mean when buying a property?

Find out what Trading Gap means when you are buying a property. 'What does Trading Gap mean?' plus over 150 other property related terms and jargon in plain English

Trading Gap

This is the difference between the price of a property that you are selling and the price of the property you are buying when the place you are purchasing is more expensive than the place you are selling.

So if you are selling a property for £100,000 and buying for £150,000 the trading gap is £50,000.

Smart buyers moving up the property ladder do so in a market where property prices are falling because although their property is worth less, the one they are trying to buy will have lost a greater value - the trading gap is decreased.

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How to Really Buy a Property

Chapter 1: The First Questions Are For You

"... market then starts to fall and values reduce by 10%. Their property is now worth £225,000 but the house they want is now £405,000. The difference, known as the 'trading gap', has gone down to £180,000. A falling market has saved them money and offered a chance to make a move they might not otherwise have..."

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Chapter 7: Why Buy in a Falling Market?

"... want to buy has gone down by £50,000. By choosing to buy in a falling market they have saved £25,000. A substantial sum of money. This difference is known as the "trading gap" and the more prices fall, the more a buyer will save when up-sizing. - Why People Trade Down - Second time..."

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"... when up-sizing. - Why People Trade Down - Second time buyers benefit from the trading gap but there are also people moving the other direction, often those who have retired or where children have grown up and flown the nest, permanently! Many belong to a sector where time is more..."

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Property FAQ

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What's in the 2022 edition .....

Why buying property is right for some and wrong for others;
The state of the market today;
What Brexit and Covid 19 means to the future of UK property;
How the media have become unreliable indicators of the market;
Who makes good quality predictions for the property market (and who doesn't);
How the market works over the short term and the long term;
The difference between property bubbles and property booms;
Why it can be a good idea to buy when prices are falling;
The principles of buying a property to let and what the text books don't tell you;
Ways to get on the property ladder when it looks impossible;
How professional buyers and investors work with estate agents to get better deals;
Why you should see as many Financial Advisors as possible;
What to do before you start viewing so you don't lose your dream home;
Who the surveyor, solicitor and estate agent are really working for;
How to make an offer to get things your way;
Who to trust and who, with the best intentions, may be misleading you;
Why you should work to minimise the time between offer agreed and exchange;
Making sense of a property survey including:
- What type of survey to get and why structural surveys can be money wasted;
- Why surveyors should never estimate the cost of works;
- When rising damp, penetrating damp, subsidence, cracking, sagging roofs, bulging walls and all the other frightening things in a surveyor's report might be serious, and when they are not;
- Why asking the vendor to carry out work is not always a good idea.
Step by step guides explaining what should be happening, what can happen, and how to solve mole hills before they become mountains;
Over 140 terms in an easy to use glossary so the jargon of the property industry can be understood;
20 true stories of successes, and disasters, that real people experienced when buying a property.

.... and what's not in the book ...

Continuous commentary banging on about how great property is and that it is the only place to put your money!
Recommending businesses that I get kickbacks from.
Rewording and republishing what is available freely from most websites anyway.
Endless tales of how easy it is to buy property and profit.
Attempts to sell you some course or other product.
Blank pages and spaced out text to make the book seem bigger.

What does 'Trading Gap' mean when buying a property?

Trading Gap

Search Results for 'trading gap' in How to Really Buy a Property

Search Results for 'trading gap' in Property FAQ

There were no results for 'trading gap' in Propery FAQ

Search Results for 'trading gap' inProperty Terminology

What's in the 2022 edition .....

.... and what's not in the book ...

Search Results for 'trading gap' in
How to Really Buy a Property

Search Results for 'trading gap' in
Property FAQ

Search Results for 'trading gap' in
Property Terminology