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worried1

Should We Expect Holiday Homes To Fall Faster Than The Rest?

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I was recently sent details of a new development, and it got me thinking about the market for holiday homes, which I imagined would be in freefall.

http://www.hopkinshomes.co.uk/development/tibbys_triangle

Southwold is a picturesque small town on the Suffolk coast, and has always had houses prices many times the local average but these are ridiculous. The flats are all sold (asking price £300k for a one bed, £400k for a two bed!). Some of the houses have sold, but a lot are available at the high prices listed.

I know that there is constant debate about what the real average salary is, but the fact is that there are very few jobs in this part of the country that pay above £20k. This means that most of these places will be sold to people from outside the area. These people will have to have them as a second home as they will presumably need to work somewhere else to earn the sort of salary that can support this.

Surely there can't be that many people with £750k left to invest in a second home, especially assuming that these prices are replicated in Padstow, Rock and all of the other 'Chelsea-by-sea' resorts.

As an aside, this is the type of new build you would typically buy for £50k less than the cost of the one bed flats here if you were to move a couple of miles away.

http://www.rightmove.co.uk/property-for-sa...EGION%255E27564

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I was recently sent details of a new development, and it got me thinking about the market for holiday homes, which I imagined would be in freefall.

http://www.hopkinshomes.co.uk/development/tibbys_triangle

Southwold is a picturesque small town on the Suffolk coast, and has always had houses prices many times the local average but these are ridiculous. The flats are all sold (asking price £300k for a one bed, £400k for a two bed!). Some of the houses have sold, but a lot are available at the high prices listed.

I know that there is constant debate about what the real average salary is, but the fact is that there are very few jobs in this part of the country that pay above £20k. This means that most of these places will be sold to people from outside the area. These people will have to have them as a second home as they will presumably need to work somewhere else to earn the sort of salary that can support this.

Surely there can't be that many people with £750k left to invest in a second home, especially assuming that these prices are replicated in Padstow, Rock and all of the other 'Chelsea-by-sea' resorts.

As an aside, this is the type of new build you would typically buy for £50k less than the cost of the one bed flats here if you were to move a couple of miles away.

http://www.rightmove.co.uk/property-for-sa...EGION%255E27564

i have been monitoring house and land prices in my area, (the marches) which includes places like Ludlow and further south Hay-on-Wye, and while i have seen obvious reductions in house prices due to the recession, its not been catastrophic. Agricultural land is at a record high and managed woodland seems to be holding up. I have a relative with about 400 acres in south Wales, and he has seen no price reductions on agricultural property there, and further south holiday homes in Pembrokshire are still at a premium.

I can only imagine that those people fortunate enough to have £500k to invest see property and land as a safe place to invest, the alternatives such as annuities, which are at a historic low, equities, which unless you are feeling particularly brave are just not an option, bank deposits, low interest rates, only £50k insured by HM, and premium bonds which offer about 3%, all look pretty dismal or unsafe.

i think the clever money will go into tangible assets such as property especially agricultural land and valuables like antiques, in particular expensive watches and antique clocks which are passed down free of IHT.

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