Some landlords have been speaking to me recently about stories in the press and their concerns about booming house prices in Teddington and the next housing bubble. Whether you are an established landlord or one considering entering the market for the first time, it is so important you do your homework. I am often asked to give my opinion to existing landlords of mine, and even landlords with other agencies.
If you are going to be buying soon in Teddington, Hampton, or anywhere in the Richmond Borough, it is vital to look to ensure you build in some capital growth by getting a property at a discount or by finding a way to add value. Securing capital growth is going to be tough over the coming years. Prices would need to rise by 22% to get back to 2007 levels. That figure might surprise a lot of people, but let me explain.
Yes, in Teddington we are only, on average, 3% below the actual values that were being achieved in the boom of autumn 2007, however, this doesn't take into account inflation. Since 2007, inflation has risen over those six and half years by around 19%. So in reality, prices would need to be 22% higher today to be at the same 'real' level than they were in 2007 (22% made up of 19% inflation plus the 3% growth required to return to 2007 figures).
Some forecasters estimate that properties bought in 2007 at the height of the market, will take until 2020 or even 2025 to recover (when you include the impact of inflation). My answer to landlords, get the best advice and opinion you can. Speak to me, speak to others, do your homework and drive a hard bargain when buying, thus ensuring when prices do start to rise again, you are in pole position.
Caption of the day....! :o)
If you have any feedback on my blog or would like my opinion on anything happening in the property market at the moment then I'd love to hear from you. You can email me at rebecca@rebeccasmithpropertyservices.co.uk.
Thanks,
Rebecca Smith
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