{"id":3392,"date":"2018-04-06T07:37:55","date_gmt":"2018-04-06T07:37:55","guid":{"rendered":"https:\/\/www.foxymonkey.com\/?p=3392"},"modified":"2018-04-06T07:37:55","modified_gmt":"2018-04-06T07:37:55","slug":"property-market-on-sale","status":"publish","type":"post","link":"https:\/\/www.foxymonkey.com\/property-market-on-sale\/","title":{"rendered":"How to tell if the Property Market is on Sale"},"content":{"rendered":"

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Let’s say I make the following statement: “Property prices only increase 2-3% per year”. People in London are probably going to think I’m an idiot. London properties have appreciated 3.5 times in the last 20 years.<\/p>\n

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So will people from the 1960s. UK property didn’t appreciate at all from 1900 to 1960.<\/p>\n

Which makes property one of the most controversial topics with lots of emotions involved.<\/p>\n

I’m sure you know real estate is a fantastic way to invest because of its unique nature. Unique nature meaning two things: leverage<\/strong> and negotiating power<\/strong>. Very few institutions are going to lend you money to invest in the stock market. But property? They will happily do so.<\/p>\n

You cannot negotiate the price of gold but you will probably push the house price in a certain direction. Negotiations when buying or selling real estate are critical to your success.<\/p>\n

There are certainly managed investment opportunities if you don’t want to do all the legwork –\u00a0FJP Investments<\/a>, for example. Of course, as with anything investment related, you’ll have to do your own research.<\/p>\n

But let’s talk about how to assess the real estate environment and take advantage of it if possible.<\/p>\n

Property markets go through cycles. They depend on various factors like the economy, the demand for location, inflation, future prospects etc.<\/strong><\/p>\n

House prices compared to people’s salaries<\/h4>\n

One very important factor in knowing whether house prices are expensive or not is looking at the house price compared to the average salary.<\/p>\n

The fact that you could have paid 3 times your salary to buy a home in the past sounds like a lie. But today, you would need 14.5 times your salary to buy a home in London!<\/p>\n

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