Property Q&A

We get sent many questions on a regular basis regarding property investment. In this blog, I answer the 3 questions that we get asked the most.

Question 1- Can I have a 20% below market value property?

Everyone wants to buy 20% below market value, who wouldn’t! The reality is that the property market at the moment is very hot, there is no shortage of buyers. If someone is claiming to be selling 20% below market value there is normally a catch. They may not allow you to have a survey as they are trying to hide a flood risk issue, a damp issue or a structural problem. The only exception to this I have seen is a professional developer who needs to release funds to be allocated to the next development.

Question 2- What will happen next with the property market?

No one can know exactly what will happen next. However, In my video "The 18-year property cycle" I explain why I think we are right at the start of an aggressive growth stage.

Question 3- What yields can you achieve for me?

The yield is a key metric to look at when considering investing in a property. In general, I would say that there is an over-emphasis on yield and an under-emphasis on capital appreciation. For example, if we take a £150,000 value house in Greater Manchester the difference between a 6% and 7% yield is about £30 per month. However, the difference in the capital appreciation over 2/3 years of a house in a good area and a house in a less desired area could be around £15,000.

If you have any more question please do get in touch!

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