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 (1850 views) Add Comment

7 Comments

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.

Sunday, February 24, 2013 10:31PM Report Comment
 

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.

Sunday, February 24, 2013 11:57PM Report Comment
 

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.

Monday, February 25, 2013 06:23AM Report Comment
 

4. mark wadsworth said...

+ 2 + 3

Monday, February 25, 2013 07:35AM Report Comment
 

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.

Monday, February 25, 2013 07:57AM Report Comment
 

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.

Monday, February 25, 2013 08:05PM Report Comment
 

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?

Monday, February 25, 2013 08:47PM Report Comment
 

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