To buy or not to buy....

That’s the question! Which way is the housing market in Middlesex going? Lots of people comment intelligently on this subject, but in reality, who really knows? I have a number of landlords who are looking to invest further in property in Teddington or Hampton but are concerned by the recent increase in house prices. Should they jump in now, or should they wait? I’d suggest the following:

·        Housing is a long term investment, not a short term one. Over the last few years people have forgotten this and have treated the UK housing market as a ‘get rich quick’ scheme. This could well have worked if you bought 2 years ago and want to sell now but to play the short game in property investing is a much bigger risk and requires a lot more time and effort. Those who work the long-term investment game, tend to remain relatively unaffected – they are under no time pressure and are unconcerned by the short term hikes or dips in fortunes. Teddington is such a desirable area that the likelihood of prices dropping significantly, if at all, in the future are exceptionally low.

·        It’s more or less impossible to pick the bottom of the market, and because of my first point, it shouldn’t really be necessary to do so. If you manage to pick it, I’d suggest it’s more by luck than judgement. To be successful, you just need to make sure you don’t overpay in whatever market you’re buying in. My most successful landlords are the ones that pick up the bargains – they study the market, don’t get pressured into buying by estate agents, but when a genuine deal becomes available they move quickly and decisively. You’ll often find the best buys are properties in poor condition – successful landlords aren’t put off by this and simply include the cost of works in whatever they are offering for the property. However bad the market, well presented properties always command a relative premium and as such usually aren’t the bargains people think.

·        As we stand currently, the sales market is moving slowly across Teddington and Hampton. The volume of sales being achieved by local agents has been low all winter, with the few sellers that there are often being over-ambitious on their sale prices. If this continues, there has to be further upward pressure on prices in the next 3-6 months which suggests that now is not the best time to invest. However, there will always be bargains out there and so, as long as you keep your ear to the ground, don't get carried away and double/triple check that you're not overpaying, then it will pay off in the end.

I continually maintain and build a list of landlords who are looking for more Teddington or Hampton property in the near future. When we become aware of a suitable property, we email round and generally someone picks up a decent deal. 4 properties have been acquired in this way in the last 3 months alone.  If you want to be included on these email lists, drop me an email and let me know.

Rebecca Smith