It Will Come Down To What And Where You Bought

[Jonnybegood]

My Brother older and wiser than myself has always told me that property is all about type and location.

Location is pretty self explanatory but with house type he told me that when buying to look around the area at the number of similar properties as this will help with the Supply/Demand theory

This advice I took when I bought my first property 16 years ago and continue with today.

I now live in a 4 bed detached property in a semi rural village location just 4 miles outside of the main city.

My 4 bed is 1 of only 20 in the village as the rest are either cottages or smallish semis, Crime in almost non existent and its seen as a desirable area to live with houses very rarely coming to market.

There are no plans to build and further property at the moment as its surrounded by green belt and anything being built at the moment would fetch in excess of £500,000, So not your normal everyday buyer kind of property.

I paid £305,000 for the property back in 2001 and today its been valued at £595,000. (Not even doubled in value)

I have been thinking of STRing but the wife and the 2 kids are happy here so its here we stay.

Anyhow back to the point, I have many friends who have owned BTLS for many a year and the majority are in the less desirable parts of the nearby city, However these properties a mix of 1/2bed flats and maisonettes have almost trebled in the same period.

2 Examples here

Bought 2 Bed flat in 2000 £78,000

Sold 2006 £200,000

Bought 3 bed terrace 2001 £94,500

Sold 2005 £213,000

Now to me someone who buys these flats are going to be hit hard if there is a downturn because they are just ridiculously overpriced for what and where they are whereas the growth on my property is far more sensible even if at a greater amount.

If there is a downturn I can safely say my village will still be desirable whereas those in BTL land are going to take a big hit as they are always going to be known as the no go areas of town to the locals.

There is also scope to build far more newer apartments which they are currently doing in the centre of the city, These will be superior brand new apartments and with prices starting at £200,000 will have a serious effect on the older flats and maisonettes within the city for sure.

Reading the local property paper last week the prices on some property has in fact trebled over the past 5-6 years as I remember property now being sold for £150,000 costing only £50,000 5 years ago and at that time it was £50,000 for a reason and nothing in the area has changed since.

[Dopamine]

I agree - location and quality always reassert themselves when people buy houses outside of a boom. They are more concerned about these things than capital gain. I pleaded with my mother to sell her ex la terrace in v dodgy area and spend a bit more to move to a 2 bedder in a less drug infested neighbourhood as soon as I thought prices were about to tank (April 2006 - I was wrong as it happens!) because I knew that she wouldn't have any chance of shifting it once the market began to tighten. It's back on the market now and still no buyer.

[dog]

There are no plans to build and further property at the moment as its surrounded by green belt

Do you feel that green belt land is truly safe from development these days?

[Guest Cletus VanDamme]

My 4 bed is 1 of only 20 in the village as the rest are either cottages or smallish semis, Crime in almost non existent and its seen as a desirable area to live with houses very rarely coming to market.

I paid £305,000 for the property back in 2001 and today its been valued at £595,000.

Anyhow back to the point, I have many friends who have owned BTLS for many a year and the majority are in the less desirable parts of the nearby city, However these properties a mix of 1/2bed flats and maisonettes have almost trebled in the same period.

Now to me someone who buys these flats are going to be hit hard if there is a downturn because they are just ridiculously overpriced for what and where they are whereas the growth on my property is far more sensible even if at a greater amount.

Another 'aren't I doing well' thread.

Actually, this is one for PropertyGuru - you'll like this PG, it's another 'my house is immune but everyone else is screwed' post

[Jonnybegood]

Another 'aren't I doing well' thread.

Actually, this is one for PropertyGuru - you'll like this PG, it's another 'my house is immune but everyone else is screwed' post

Not at all mate. If I had bought 3 or 4 of those £50k properties then maybe yes.

Just happy to have a home to live in firstly, Secondly an investment maybe

[Fairies Wear Boots]

Another 'aren't I doing well' thread.

Actually, this is one for PropertyGuru - you'll like this PG, it's another 'my house is immune but everyone else is screwed' post

Well his place would have to drop by 50 % for him to lose money on it. Plus he lives in it. No problem there then.