Are You Investing In The Right Property?
Remember me commenting the other week on the number of first time buyers who are having to wait until they are 40 to get onto the property ladder? Well the press is getting even weirder.
Depending on where you invest and in what property types you could be paying thousands of pounds more than you’d expect.
You see, I was reading the Mail Online the other day, and I came across a story which kind of surprised me in its complexity. If I am honest I had to re-read it twice to get my head around all the contradicting figures.
Property fluctuations
Now you are probably already aware that property prices increased by 1.5% between April and June, but what you probably didn’t know – well I didn’t anyway – is that flats and maisonettes are storming ahead with 67.5% property price increases.
But they weren’t the only property types to experience a boom. Detached properties for example have also risen 33% above average property prices. It’s incredible.
Yet to make this story even more complicated, property locations are also having a detrimental effect on the cost of housing.
Take London for example.
Whilst detached properties have risen in value across the rest of the UK, in London they have dropped by more than £30,000 between April and June, whilst flats have risen by £8,000.
Isn’t this meant to happen?
Okay, okay… I know that a properties location can have a detrimental influence upon its valuation, but what surprised me most about these figures was the extremity of the differences.
Yes, you may be able to spot a huge difference between properties sold in the South of the UK to those sold in the North. But to witness such a difference between towns/cities that sit side by side is shocking. You have to wonder what is happening.
I suppose in many ways what these statistics prove is the importance of choosing your property investments carefully, calculating their profitability and looking at their tenancy demand first before you invest.
With such property fluctuations you need to be careful, otherwise you could be setting yourself up for a financial loss.
Wendy xx
