Property Remains A Sound Investment, But More Importantly Buying A Good Home Is Still High On The Agenda. I Do Not Have Any Real Evidence Of This

[stuckin2up2down]

This EA newsletter brightened up my Monday slightly.

Apologies for the formatting, they are ship at brochures and all that.

July 2016 Newsletter

As the political turmoil and very hot summer ticks on, here are some very quick headlines for your consideration:

Prices – Are they going up? No. But are they going down? No. Despite the ‘baited breath’

syndrome that seems to have affected the country since Brexit, we have not seen any

significant drop in prices. Some properties are on sale for an optimistic figure – but if the

price is right then the property will sell. In certain areas we have achieved more than the

asking price, this is unusual but is an indication that the market is far from dead.

Buyers – Buyers still exist, are still buying and are still keen to get the home of their

dreams. The chains can be longer than normal but we carefully check all offers and chains

to make sure they are good to go. We have had one or two (literally one or two) buyers

getting nervy about buying, but we have been able to re-sell the property involved straight

Buy-To-Let – Despite media comments to the contrary, the buy-to-let market is still

strong. We are still seeing ‘investor’ buyers and first time landlords buying property of all

descriptions, in particular flats. The return on rent still looks good and property still has the

feel of a sound investment. Low interest rates and a volatile stock market have both

played their part in keeping property investment attractive.

Commercial – You will have seen headline news about commercial investment funds.

The problem with these is lack of direct control. Bearing in mind you can put a commercial

property in your pension, setting up a SIPP to do so is straightforward. We are still seeing

lots of interest in shop units and small commercial buildings by individual landlords. Like

residential property, the returns and control make this a very attractive option.

To conclude – These comments are based on what we are seeing at the moment across

all of our branches. Property remains a sound investment, but more importantly buying a

good home is still high on the agenda. I do not have any real evidence of this but perhaps

in uncertain times, investing in your ‘castle’ becomes even more attractive!

[GreenDevil]

Agree with most of whats said but...

Affordability is key here, and most of london and the south east isnt.

Even parts of the midlands heading that way.

I would expect London to fall until it becomes affordable.

Banks should be tightening up lending soon if they havent already.

I think time is good to buy, but you have to offer low and get it cheap.