Wow 2017, it doesn’t seem that long ago that the year 2000 sounded so futuristic!
Whilst I don’t buy into the ‘new year new me philosophy’ (seriously how many new years resolutions are kept to past January?) it does give us a good opportunity to take stock of where we are and take action if we haven’t progressed as far as we had hoped.
So 2016 is over and what a year it has been in property – the Brexit vote didn’t bring the overnight disaster many predicted, although some uncertainty still remains. It is all to easy to blame Brexit for the slow down in prime central London’s property market, but most people were predicting this long before the Brexit vote.
Then it was announced that letting agents fees to tenants were to be banned, the exact details of which we are still waiting to hear. It’s my personal opinion that this is not a good move, although I would have preferred to see a cap put on referencing fees. Some agencies have been milking these fees as a way to charge Landlords less and effectively ripping off tenants. My issue is that by banning fees altogether there is nothing to stop unethical tenants who know they will not pass referencing to try their luck anyway. Referencing does cost money, not as much as some of the corporate agencies were charging but someone has to pay these fees. Passing these fees on to landlords will only increase rents making the tenants worse off. A sensible cap would have in my opinion been a much smarter solution.
SE18 house prices have despite all that has gone on continued to perform with an average 11% rise or £35,379 over the last 12 months.
Looking forward to 2017 the first thing on the agenda for landlords is Greenwich and Bexley’s consultations on additional and selective licensing. PLEASE MAKE SURE YOU GIVE YOUR FEEDBACK TO THE CONSULTATION, it is no good sitting there and complaining once it has gone through if it doesn’t go the way you would like.
2017 also sees the start of the implementation on the removal of mortgage interest relief. As I have discussed before there are ways to minimise impact, taking advise from your accountant or one who specialises in property is a good place to start, and could save you thousands.
So is it still worth investing in property in 2017?
Have you ever heard anyone say as safe as the stock market? No ? Me neither. Going forward property values will have dips and troughs but continue to rise over time, and there are two things you need to do to prosper in property
1. Be prepared
2. Take action
Number 2 is often where people let themselves down, “I’ll just wait and see what happens with….”, and as values rise regret sets in. The most common regret among property investors is they didn’t start sooner.
My advice to get started, make sure your cashflow works now and after 2020. SE18 is evolving at a rapid rate and becoming a more and more desirable town.
As for the new years resolution, forget it! How about a 3 month resolution that doesn’t allow time for procrastination to set in?
Want some accountability? Let me know what you will have achieved in 3 months time!