Why NOW is the best time to buy Bournemouth property!

I often get asked by aspiring property investors – when is the best time to buy property? There is, as you may have noticed, a huge amount of negative press at the moment aimed at property investors. Stamp Duty increases, mortgage interest relief restrictions, the impact of losing tenant fee’s… Everything seems to have come at once and it is very easy for potential investors to be put off. But is now really a bad time to invest in Bournemouth property? Or could NOW be the perfect time?

There are a lot of properties hitting the market over the last few months from landlords looking to sell and avoid the tax changes to mortgage interest rate relief - which could even see some landlords paying tax on profits they are not even making! That alone is enough to make anyone want to sell up.

Now for existing landlords it is really important to understand your new tax liability following the upcoming changes. You must speak with a property tax specialist and understand how to mitigate any effects that you may get. You might even find out you don’t need to sell – so get some proper advice first! Please let me know if you would like any recommendations.

NOW is the best time to buy property in Bournemouth.

There are some fantastic opportunities available for those currently in a position to buy. Think of it like this. Not only do you have motivated sellers (potential room to negotiate price), you have a higher number of similar types of properties on the market at the same time which squeezes the price in your favour.

The cherry on top of course is that with all of these properties up to sell, the supply of rental properties (which already is nowhere near the levels needed to meet demand) drops even further. This in turn will see rent increases and reduced void periods. In fact, it wasn’t long ago that I was talking about the council’s statement which announced a shortage of housing of 4,974 properties per year in Bournemouth.

And as you are buying, you can ensure you structure your purchases in a way to reduce your tax liability ahead of the major changes being introduced from April 2017. 

Sounds like a good time to buy - but what about future prices with all of the disruption in the property market?

Great question - However unless you are flipping properties, you should be looking at long term gains; and for that you need to look long term.

It wasn't long ago I published a report showing a 300% capital growth in the last 20 years in Bournemouth and it is a clear example that over a long term basis, property in Bournemouth is one of the highest performing investment classes that you can choose.

Just take a look at house prices over the last 5 years. Every type of property has increased in value. Terraced properties have increased by a huge 93% on average which is inline with the slowdown of development of these types of properties and the large demand out there. Even flats have increased on average by 27% over the last 5 years.

Like with everything - taking the first step is always the hardest part, so if you are just looking to get started in the property market it can seem very daunting. Get in touch, and I will be more than happy to give some advice and answer any questions you may have.

And if you keep your eye on this blog, you will see I regularly post a range of good investment properties currently on the market which may be worth a detailed look into.

I love talking property, so if you have any questions, queries or would like some advice specific to your circumstances – please get in touch. Email me at luke.marchbanks@belvoir.co.uk or give me a call 07979123970.

All the best


Luke Marchbanks