Prime property markets around the world see their popularity and values shift over time. This is natural as falling prices in one area can cause people to target others. The higher demand that occurs as a result can push prices up.
According to data from Savills high-end housing in London had a tricky 2017. Their figures say the values of properties worth over £1.5million fell by 3.3% in that time. It wasn’t the only prime market to stutter though. New York saw a 2.7% fall in value and Dubai lost more with 6.8%.
At the same time other high-end markets have seen rises. Tokyo performed the best, enjoying an double figure 10.2% rise. Sydney had a 7.7% increase and Paris moved forward with 6% growth.
The drop in value in London is not a cause for concern for investors. In fact it could encourage more people to start their search to find a bargain. In areas like Kensington and Chelsea it is believed that house prices have fallen into the trough. Consequently, a rise could occur in the future.
How do you get a bargain?
There are a number of different things potential investors can do to enjoy a cut in property prices. Negotiation is always the first option. Some sellers may reduce prices further to get a sale over the line. This is generally more likely with properties that have been on the market for several months. You need to be careful not to alienate the seller when negotiating though. It is good to have up to date knowledge of current valued per square metre for the area.
A second thing to do is to cut out some of the extras that are included. High end properties can come with a number of valuable bonuses such as expensive furnishings and even vehicles. Removing these from the deal could reduce the price.
Have your plans in order
If you are planning an investment it is wise to know what the next steps will be. Do you plan to live in the property? Will you let it out privately or to the local authority? Think about all of the options and choose the right one for you.
Finefair can offer help and advice. Our service is diverse, ensuring we can suit different strategies. For one we are the best for council leasing Kensington and Chelsea has to offer. We understand the process, the obligations and, more importantly, the benefits. As a result we are perfectly placed to help investors.
If you would like to discuss council leasing with us please don’t hesitate to get in touch. We have extensive knowledge of Kensington and Chelsea, ensuring we can provide relevant area specific advice.