5
Feb
Bargains at the top end
Estate agents and others in the property market are experiencing an
increase in buyer interest doubtless stimulated by lower house
prices and cheaper mortgages. Moreover, it seems the top end of the
market is getting in on the act when it comes to bargains.
National Association of Estate Agents (NAEA) chief executive Peter
Bolton King recently stated: "NAEA members reported a slight upturn
in activity towards the end of December, with both buyers and
sellers showing an increase in interest. Furthermore, early
indications are that the market has picked up significantly in
January."
But if more people are looking to become first-time buyers or trade
up lower down the market in view of the increasing supply of
bargains, it appears to also be the case that those looking towards
the top end have a good chance at present to land a great
deal.
This point was made by Jeremy Way, a director at Hirch, Way and
Ambler. He stated that his own company's recent experience has
included a deal concluded last week for a £2.3 million
property that was originally priced at £3.25 million.
Quoting other examples, he commented: "We've got one contract out
at £2.9 million and two contracts out at £3 million and
we have actually got a contract race. When did you last hear of a
contract race? [There are] three guys beating themselves up trying
to get there first because that is an absolute bargain."
Mr Way suggested that the best places in which to buy at present
are those where no matching developments are allowed, giving the
example of the Webb Estate in Purley, Surrey, in which no more than
one house per plot is allowed.
"From my point of view, if you want to make money on good
investments then you buy something in high demand and limited
supply," he advised, suggesting that the Webb Estate's covenants
mean it will never become overdeveloped.
Moreover, Mr Way concluded, now is a great time to buy because an
investment will make more money than cash in the bank at a time of
low interest rates: "It's like a piece of art or anything else; if
you've got the money, you buy the best quality that you can get
your hands on. That will show the greatest return and the minimum
risk against loss."
Overall, it seems the housing market could well be on the cusp of a
pick-up, even as the overall economic news - with the recent
official confirmation of a recession - has looked gloomy. The
Negotiator Magazine noted as much this last week, suggesting that
the recent comments by business minister Baroness Vadera that the
green shoots of recovery could be discerned may not be anything
like as risible as some commentators have supposed. Increases in
buyer interest are one reason stated. So too, perhaps, might be the
rolling out of the Firse & Country Virtual network. It might be
that the company has seen those shoots and is making sure it is in
a good position to take advantage.
So it may just be that now is the perfect time to pick up one of
the bargains that are out there, with better times for the market
nearer than many imagine. 