In this week’s episode, Mark Homer founder of Progressive Property with Rob Moore discusses what’s behind top property news stories from this week.
The BBC has got together a group of experts to share their predictions on whether house prices will rise or fall in the coming year, something we all want to know but how reliable are the predictions and who are the experts making them?
The predictions have been sourced from a diverse array of commentators and all but one of are predicting a rise but could the one who has gone the other way just want to be the outlier, if you wanted to be talked about this would be the way to do it.
The level of certainty, predictability and trajectory versus last year is completely different
meaning Marks prediction is that this could build to make a really good year for those in the property space.
How energy efficient is your property? It’s being reported this week that an EPC rating of ‘E’ or higher will be required for all rental properties from April 2020 with a trajectory moving to the ‘C’ grade that will become regulation in the next few years. If you are refurbishing a property it makes sense to get on and look at making it a ‘C’ now removing the need for further work as the regulations get tighter, there are going to be a lot of changes so be proactive and effective – get it done now!
Finally, there is the report from Zoopla about the link between the cost of a season rail ticket and the price of a property.
If the choice was made purely on economic grounds Mark would buy the most expensive property and cheapest season ticket because money in a property will go up whilst money on a season ticket is gone forever when you make the payment. As a hugely successful and experienced property investor Mark knows all about how to make sure your money is working for you and never gets lost.
The array of predictions are from quite diverse commentators but they are all predicting a similar pattern.
The lenders involved are a good source because they have a lot of empirical data with mortgages completing and can see the trends as they have been in the market for a considerable amount of time. In contrast, Rightmove are predicting a 2% rise but it needs to be said that their information is based on asking prices, and they are always fluctuating.
You will need to have an EPC and it will have to be rated at higher than an ‘E’
This is good for landlords who comply and are competing with those who haven’t spent the money required to comply.
If the work you need to do to bring the rating up to ‘E’ devalues the property by more than 5% of the property value. You are exempt and this is likely to be listed or old buildings
Rail travel and property prices
Peterborough and Grays in Essex are about the same time on the train into London but there is a complicated perception about travel time from the home counties and the ticket prices.
The relationship with a season ticket is not linear there are lots of other influencing factors
If you are buying it for yourself then living in a nicer area will be more important as you will want to have more compatible neighbours and access to good schools.
‘The regulatory changes have meant that fewer landlords are taking those properties’
‘There is a lot of value in buying the most expensive property you can in financial terms’
‘Getting on the property ladder is still a challenge. Help to buy on existing properties not just for first-time buyers would be a good thing for buyers’
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