Sunday, Feb 24, 2013
Forget the first time buyer new builds then
Telegraph: Newbuild homebuyers beware: period properties enjoy quadruple house price gains
New research suggests that period properties tend to see four times as big an increase in house prices as newbuild homes the same areas.
That’s a big difference for today’s first-time buyers, who have to stretch their finances further than earlier generations to get onto the property ladder
Posted by crash n burn @ 08:30 PM (1479 views) Add Comment
7 Comments
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1. libertas said...
This is because inflation, taxation and regulations have reduced build quality DESPITE technology being 1000's of times better. Marx would be proud.
We actually have more than enough stone underground to build ALL our buildings from beautiful natural stone, but stupid environmental legislation gets in the way.
2. enuii said...
The biggest reason is size, period houses are much bigger and in general will be on a bigger plot with a bigger garden etc. However the author of this articles only perspective is from the view that a dwelling should 'perform as an investment' and then goes on to whine about how investment returns from 'period properties over five years to the end of 2012 in prime central London' were quadruple the return of new-build ones. When the London market eventually implodes this will probably be historically viewed in a similar vein as stock market tips from barbers in the 1920's.
3. drewster said...
What enuii says. The increase in value comes from the value of the land, not the cost of the bricks & mortar; therefore the larger properties will rise more.
A secondary reason is location. In London at least, most of the new-build developments are in the poorer east; whereas the period properties are in the richer west. The established areas also have decent local shops; whereas in some of these new estates you can walk for 20 minutes before finding any shop other than a Londis off-licence.
4. mark wadsworth said...
+ 2 + 3
5. Baller said...
before I even read the article I assumed the author lived in a period property and was congratulating himself on his return, lo and behold I was right! the stats relate to central london, cant say here in the humble provinces quadruple HPI differences hold true, BUT typically older properties are better located in established communities which of course explains their continued popularity.
6. tenyearstogetmymoneyback said...
Agree with all the comments. Since moving to Bournemouth dozens of period properties
(and even some 1970s ones) have been demolished and replaced with blocks of flats.
I knew someone who lived in a house which was converted into four flats which was then
demolished to build twelve.
7. mark wadsworth said...
@ Tenyears, I assume that you observe "knock down houses replace with flats" more in the expensive parts of Bournemouth, i.e. BH2, BH3 and BH4, and much less so in the cheaper parts BH1, BH10 and BH11?