If there’s anything we’ve learned in the past two decades, it’s that real-estate investments are not always a sure win. After all, one of the main causes of the major financial crisis of 2008 was subprime mortgage loans, which means banks were generously evaluating both lenders and their properties.
Ever since, we’ve become more careful and risk-averse in terms of real-estate assets. While some areas barely see any growth, others continue to boom even when national figures are steady or slightly going downhill. To help you separate worthwhile real-estate resources from stagnating ones, you’ll need Pritchards, the best estate agents in Bath, on your side.
Don’t Get Lost in the Big Picture
If you go to any estate agent and ask for a general opinion on buying real estate, they’ll tell you what any sound financial advisor would, namely that it’s usually not worth it. If we take a look at the average price of houses within the United Kingdom, a 1.2 percent yearly increase across the board isn’t that alluring.
While numbers rarely lie, they can often be misinterpreted. Although many areas are stagnating or even slightly losing their value, others are actually proving to be more profitable than ever. For some inside information on where you should look, Pritchards is a good place to start.
Let’s take an example. Unlike most British realty, the value of property around Bath is actually growing at a steady 4.1 percent per year, which is three times the current movement of the national market. The price for buying a home here is currently over 60% the national average and there’s no signs of it stopping any time soon. The explanation is quite simple: Bath sees more interest from buyers, especially high-end ones, than most other places.
Especially when you’re working with a finite product (there’s only so much property that can fit in a given place), such as apartments, houses, or commercial buildings, the balance between offer and demand is likely to impact the prices in a significant way.
There is no doubt about the fact that local expertise and experience make the difference in terms of appropriately evaluating realty prices. The right estate agent will first paint you an accurate picture of the average property values in different neighbourhoods. Then, they’ll break down each of them in terms of sales volume, so that you get a better overview of market movements during a certain timeframe.
With Pritchards, you can find your dream Bath house effortlessly. Depending on your requirements, there’s a good chance you can let the property for a while, which gives you the opportunity to earn back some of the money you’ve paid for it. When you’re ready to move in, say after 5 to 10 years, you can re-evaluate your purchase and consider your options. More often than not, you will be able to make anywhere between 15% to 25% profit just by reselling the home, as many who purchased theirs in the late 2000s already have. If you’re happy with your investment and do not wish to sell, then you will have saved thousands, perhaps tens of thousands on a smart purchase made ahead of time.