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The British Obsession With House Prices
May 8, 2009Article by Ray Withers
Obsessing about how much your property is worth is the British way – but there’s no need to lose a lot of sleep over the current price falls.That pile of bricks and mortar represents more than just that in a lot of people’s minds – it’s stands for their hopes and dreams.
The value of your London or Liverpool investment property, or wherever else it may be, represents your financial acumen in picking a winner – much like backing an outside winner in the Grand National.One thing is for sure – in the time you own any property, the value will go up and down, but it doesn’t matter, and whatever emotional values you apply to your property don’t really matter to anyone but you.If you had invested in UK property in the 1990s, the current price slump would not bother you, because the value still stands at a substantial profit because over the long term property appreciates in value and always has done.
The same applies right now – in the 1990s a lot of people bought property as an investment and are sitting on a portfolio worth a pretty penny now.
Buying now will put anyone who invests in below-market-value UK property now in the same position. The slump won’t last forever and as long as you ride out the storm and sit tight, you’ll make a profit.
The basic principles of property investment are sound – it’s pushing the envelope to make speculative profits that causes the problems.
So what are the rules?
They vary from investor to investor. Basically, they are simple:
* Always try to buy under value
* Always try to finance the deal with someone else’s cash – like a bank or building society
* Buy property that needs low maintenance
* Remember location – people like to live near shops, station, bus routes, pubs and restaurants
* Buy property that’s not too quirky that you can sell on if you need to
A development that fits this bill is an exclusive deal on flats at Merchants Court, Wavertree, Liverpool, built by a leading UK developer just a few minutes walk from Wavertree High Street and a short train ride from Liverpool city centre.Prices start at £89,960 for a ground floor flat with a current valuation of £119,950 and an estimated gross rental return of about £650 per month.
Merchants Court comprises 34 two-bedroom apartments arranged over three floors. The developers were a major UK company that needs to grab some money back from Merchants Court to ease their cash flow.
Each apartment has double-glazed windows and comes with a quality fitted kitchen with built in electric oven, hood and hob, standard washer and dryer laundry facilities and electric showers in the bathroom suites. The development is also very secure in a private gated setting with phone entry system.