There has been a fair bit of bad news recently for landlords, I’m mainly referring to the reduced tax relief on buy-to-let mortgages. I’m not going to write about this today as I’ve already mentioned it in another blog but it’s not all bad news for landlords at the moment!
I came across a summer property market report produced by BNP Paribas Real Estate which proved interesting reading. If you ‘re not familiar with who BNP Paribas are, they are a large investment bank and if anyone is in the position to make an educated guess about the direction the property market is going, it’s going to be a large bank that looks at and invests in most global markets and has a huge research budget to boot!
Their predication is the UK will see nominal house price growth of 7.6% per annum between 2016-2020. They do go into a little more detail regarding area of the country and Watord sits in an area they have predicted will show a 24.8% increase which is slightly lower than some other areas but still fantastic growth.
Watford Property Prices
If you are looking to buy locally then this report should fuel your drive to do so. It certainly has mine and has actually made me ask the question about a development I’m in the middle of and whether I should sell (post refurb) as planned or whether I should hold for the long term based on their predicted growth.
I often refer to the developments going on in Watford and the money being pumped into the town, if you couple that with the positive outlook above then I’d say it’s looking like a good time to buy.
One I would say though is don’t just rush into it. It’s more important now than ever to get some good tax planning advice. If you are planning to buy with a BTL mortgage then you need to understand the potential numbers and how this will affect your tax position as it will be very different by 2020 compared to the easy ride landlords have had before now.
If you’d like to talk tax then I can recommend a good accountant. If you are looking for a mortgage I can also recommend someone that is very good! In fact, if you need a professional to help you with anything property related I’ll be able to give you the details of trustworthy people who will do a good job. Don’t underestimate how tricky it is to find these people!
Of course if you’re a bit further along the process and need someone to find you a nice, reliable & trustworthy tenant then we can help you with that too.
P.S. If you would like a copy of the full report from BNP Paribas then ping me an email to say hello and I’ll send it over to you.