If the market is slowing, then all the principles of sensible property investing become even more important. The old rule of ‘location, location, location’ becomes critical. In a slowdown, people still need or want to buy property – you just have to make sure that yours stands out to get the best possible price. At the end of the day, well presented, attractive properties that are well located will always be in demand, so if you have purchased well, you will still be able to sell at a fair price.
The riskier properties are:
• City centre flats and apartments in large developments where there are hundreds of almost identical properties.
• Properties that are in run down neighbourhoods or have difficult access
• Properties that lack crucial element for the market that they are aimed at i.e. family homes that have not parking or garden.
• Large family homes with a £1million to £3million price tag.
So, the properties which are likely to perform better in a slow market are:
• Individual properties that are one-off’s or have particular character and features
• Properties that are located within regeneration zones
• Homes worth more than £3million. Research suggests that these tend to buck the trend as buyers are wealthy overseas investors.
• Properties in traditionally popular areas
• First time buyer level houses – such as terraced properties. Even if there is a % reduction, if the property is valued less it will be less of a slip in absolute terms.