Have people forgotten about the golden rule when buying Property
London, England -- (SBWIRE) -- 06/05/2012 -- There are couple of talks going on about The Guardian’s report about House prices edge up in London and south-east – but not elsewhere .
Let see why that has happened and is it really something shocking , I wouldn’t think it in any way like that . We represent http://www.buymyhousenow.co.uk and over the years we have seen and dealt with many buyer and investors . We anticipated this when recession started due the golden rule which is some forgotten by today’s investor .
The Golden rule for property investing has always been Location Location Location . At http://www.buymyhousenow.co.uk we buy any house as we have investors all across UK ,as we can discriminate but over the year we have seen it again and again the sensible investors they don’t fall for the just the yields or is this property too cheap or what can it produce .
A lot of this goes to current property gurus as well who have really shown one side of calculation to investors , that is if a house is generating cash flow i.e make money on top of mortgage , then everything is great . Which is great but really its not really the major profits than you are targeting .
Let discuss this with the help of an example , you reach us with the concern that you want to sell your house fast and we do it for you , now lets consider we give it first to a investor who I not concerned about just cash flow and not Location e.g whether its in London or Not or in South East or not .
Let consider a house worth £100K in today's Market value .
Let say the investor make £200 per month , so in a year he saved £2400 and in 5 years its £12000 and that is gross . And most probably nothing in capital as the test of time has now proven that if its not in right location then you have not made anything in capital .
Now lets look at the other investor who might be making £100 per month , so he saved or made £1200 or £6000 in 5 years . And on the current rate the same house will be worth about £125,000 in 5 years as proven by test of time . So this investor would have made £31000 which clearly shows how important is it to buy in right location .
Now a big problem then might be if you have already bought in a location which not great , well that not a problem at http://www.buymyhousenow.co.uk we buy any house any where in UK and in any condition .
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