What is UK property really worth? Here are three ways to find out

chucknorris

RenovationMan wrote: »

You can just opt for a fully managed property via an rental agency. They sort out everything but charge a higher price. I used this option when I was working overseas, it worked well and I had no hassles.

We manage our own properties but if we haven't reached a very good market to sell by the time I am 65 (ish, over 10 years away) I will take up this option. As the management fee only works out at about 0.5% of the property value it is well worth paying this to get to a better market to sell in, rather than selling up earlier due to wanting to be free of the management hassle.

somethingcorporate

RenovationMan wrote: »

You can just opt for a fully managed property via an rental agency. They sort out everything but charge a higher price. I used this option when I was working overseas, it worked well and I had no hassles.

It can also be a crap option as some agencies can be criminally bad at what should be a straightforward, expensive but reassuring option. I guess it is about getting the right agent in the first place.

Still, the buck stops with the landlord and it is something different about being hard to get hold of and not having all your marbles left to deal with a complex business situation that can have severe financial and criminal ramifications if done badly.

RenovationMan

abaxas wrote: »

You are english and you look at property 2004-2012 in the North. The price in £ is the same now as it was in 2004.

You are Japanese and look at the same property. In terms if yen, it has halved in 'value'.

To one person, they have not lost anything. To another the market has crashed more than a crashy thing living in crashville.

That is my point. You can make money, but that doesnt mean the money has any value.

Are there many Japanese people looking to buy into the UK market?

abaxas

RenovationMan wrote: »

Are there many Japanese people looking to buy into the UK market?

Huge Nissan/Renault factory in the North East.

Maybe they do :P

RenovationMan

somethingcorporate wrote: »

It can also be a crap option as some agencies can be criminally bad at what should be a straightforward, expensive but reassuring option. I guess it is about getting the right agent in the first place.

Still, the buck stops with the landlord and it is something different about being hard to get hold of and not having all your marbles left to deal with a complex business situation that can have severe financial and criminal ramifications if done badly.

We must have had the right agent right off the bat because it wrked really well. I dare say that if the pensioner is dissatisfied they can move to another agent.

This whole 'losing marbles' discussion is moot anyway. The person would either have his properties managed by his next of kin or the properties will be sold to fund his care.

Thrugelmir

RenovationMan wrote: »

Depends what you're investing in and the strategy you are applying. If you are getting into a BTL to use the rent to fund a retirement that will take place in 20 years or more, then it's largely irrelevent over that time scale when you get in and you don't get out until you die.

BTL didn't take off until 1998. So still 6 years yet to see whether BTL is indeed a good investment or not.

Prior to 1998. Majority of let residential property was bought by the capital rich. Same tax rules applied then as now. So the only significant change and driver was the availability of cheap money.

So jury's out I would say.

RenovationMan

Thrugelmir wrote: »

BTL didn't take off until 1998. So still 6 years yet to see whether BTL is indeed a good investment or not.

Prior to 1998. Majority of let residential property was bought by the capital rich. Same tax rules applied then as now. So the only significant change and driver was the availability of cheap money.

So jury's out I would say.

Surely your point applies to every investment that has not yet reached maturity? For example, my personal pension is hopefully going to fund part of my retirement and yet the Jury is out for the next 20 years before we see how it works out.

shortchanged_2

RenovationMan wrote: »

Surely your point applies to every investment that has not yet reached maturity? For example, my personal pension is hopefully going to fund part of my retirement and yet the Jury is out for the next 20 years before we see how it works out.

True.

Look at endowment mortgages. They were the dogs bol**cks when they first came out. Cracking investment they turned out to be.

Thrugelmir

RenovationMan wrote: »

Surely your point applies to every investment that has not yet reached maturity?

BTL is a business not an investment. A common misconception. As of course many were spoon fed capital appreciation during the boom years.

robmatic

abaxas wrote: »

You are english and you look at property 2004-2012 in the North. The price in £ is the same now as it was in 2004.

You are Japanese and look at the same property. In terms if yen, it has halved in 'value'.

To one person, they have not lost anything. To another the market has crashed more than a crashy thing living in crashville.

That is my point. You can make money, but that doesnt mean the money has any value.

Why is someone who is earning a salary in Japanese yen buying a property in the North of England?