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.

To learn all the tips and tricks involved in purchasing a property the smart way pick up a copy of my ebook How to Really Buy a Property.

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How to Really Buy a Property

"... 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..."

"... 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..."
"... 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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