Those of you
who regularly read my weekly articles in the Thanet Property Blog will know I
like to keep abreast of the Thanet property market. Something attracted my
attention this week about the local property market, something I wanted to
share with my many readers.
Over the last month, there appears to have
been an anomaly in the local property market, whereby asking prices in the
borough have dropped, yet property values have increased. The average asking price of a Thanet property, according to Rightmove, fell 1.2%
this month yet the average value of
a Thanet property rose by 0.9%.
So how does
this relate in monetary terms? This
anomaly has driven the average asking price
of a Thanet property down slightly to £262,100 whilst the average value is now 219,100.
So why the
difference? Technically an ‘asking price’
can be any price that a homeowner wants to place his or her property on the
market for. Unfortunately, many times this is done without research and can
result in overpriced properties that don't sell. As the Summer months are
normally slightly quieter those left on the market wanting to sell often temper
their asking prices in these months to try and generate interest in their
property.
On the other
side of the coin, the property ‘value’
is the price that a willing buyer is prepared to pay and a willing seller is
prepared to sell at. Therefore, in a nutshell, Thanet property
values are continuing to rise and those homeowners in Thanet who have
properties on the market, last month on average, reduced their asking prices ..
great news for property owners and buyers alike!
In previous
articles, I have spoken about the continued fundamental shortage of property
coming on to the market compared to buyer demand. That is especially true for
homeowners wanting to upgrade to a better house/better location. I can appreciate Thanet home owners are
reluctant to put their own property on the market speculatively and wait for
the right property to become available and some high demand locations can
suffer from a property stalemate.
Most homeowners don’t
want to sell and have nothing to buy.
But that’s
the beauty of the much maligned English and Welsh house buying process. You can
find a purchaser for your property, then ask them to wait. By agreeing a sale (subject
to contract) before you try to buy sounds concerning to many, but with fewer
properties for sale you need to have a buyer for your property or you will be
treated as a less serious buyer yourself. If you cannot find the right home for
you, you can slow the deal with your purchaser until it comes along. If nothing
suitable does comes along and you lose your buyer then the worst outcome is
that you have to find another purchaser or take your property off the market
and stay put for now, and as long as you mention this at the start they must
not commit to any costs until you have agreed your onward purchase.
However, for
the landlord/buy to let investors, these potential problems are nothing further
from the truth. As I write this article, there are over 500 flats for sale, 200
terraced houses and over 250 semis for sale in Thanet. Landlord/Buy to let investors can normally
pick up some bargains in the Autumn months, as sellers who are selling their
homes often have a pressing need to sell by this time.
The types of
houses a Thanet landlord typically buys, are not the same types as the
homeowners wanting to move to a posher area of the borough as they are
attracted by larger semis and detached properties. The best types of properties
for buy to let are the smaller flats, terraced and semis (not the big detached
ones). There are in fact too many of
these smaller properties for sale .. just look at the numbers of properties for
sale (mentioned in the previous paragraph).
If you are a
landlord or thinking of become one for the first time, and you want to read
more articles like this about the Thanet Property Market together with regular
postings on what I consider the best buy to let deals in Thanet, out of the hundreds
of properties on the market, irrespective
of which agent is selling it, then you might like to visit the Thanet
Property Blog www.thanetpropertyblog.com.
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