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 FROM MOTIVATION TO INNOVATION
In association with FE Samuels |
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| Emile Fonderson, Managing Director, FE Samuels Property Services |
Investing in the Eire and UK property market is a lucrative but complicated process. Emile Fonderson, the man in charge of leading property services company FE Samuels, guides readers through he minefield so they get the best return from an investment
No one could have failed to notice the massive property boom across the whole of the British Isles over the last few years. But the question on everyone’s lips right now is, “how much longer will it last?”
There’s no easy answer to that. It all depends what kind of property you have, and where it is situated. Northern Ireland has seen the most meteoric house price rises – in the case of Belfast, over 60% in the last year. London and other parts of south-east England have enjoyed an upward curve, which is all set to continue in the run-up to the Olympic Games in 2012. Many parts of the Irish Republic have enjoyed massive growth, too, with average house prices now nearly four times what they were a decade ago. According to the Dublin-based Economic and Social Research Institute, Irish house prices have increased by 270% since 1996.
There has been talk amongst the pessimists that such rampant growth must inevitably lead to a property crash, as it did at the beginning of the 1990s. But I believe this is alarmist. In London, for example, as construction companies focus on essential infrastructure projects for the 2012 Olympic Games, demand for housing will continue to outstrip supply; and prices will continue to increase. Even in the Irish Republic, where many experts predict a slow-down in house prices, this is probably just part of the inevitable cyclical nature of property markets. As long as your property portfolio is of a high quality and in the best location, you should be able to sit out any downturn in the market.
SOURCING SUPERIOR PROPERTY
Quality and location – that’s the tricky part. Investors who want to ensure they choose exactly the right property are advised to turn to the experts for help. Property specialists have links with key professionals further along the property development and house-building chain. In addition to actually sourcing ideal real estate, they can arrange every stage of the property purchase from mortgage brokers and surveyors to solicitors and accountants. On buy-to-let property they can help with everything from financing and finding suitable tenants to managing, decorating and furnishing the property.
VALUATE YOUR INVESTMENT
But even the best real estate in the most desirable areas can have complications. Just as it’s essential to know what you want in an investment property, it’s equally essential to know what you ought to avoid.
My advice is to always be thinking of the rental or eventual resale value. Look out for obvious pitfalls. Is the property at risk of flooding? Are there potential structural problems? Is the local area prone to crime or graffiti? Is it too loud? Is there a noisy road close by? Is there a busy school in the street?
RESEARCH LOCATION
While you obviously want to be close to transport links, shops and amenities, at the same time you don’t want to be too close. Rental tenants or future buyers will want to feel they are moving to a pleasant residential area. They won’t want to be immediately surrounded by shops, pubs and restaurants. Make sure you spend lots of time researching the local area before you buy.
Just look at pop singer, Madonna, for example. Relocating from the United States, she spent ages searching for her ideal English country house. In 2001 she spent £9 million on the beautiful Ashcombe Estate near Tollard Royal in Wiltshire. It had everything she needed; multiple bedrooms and bathrooms, plenty of staff, lots of land, pheasant shoots and stunning views. It was only after she moved in that she realised there were public footpaths running close to her house. A bit of research would have saved her endless run-ins with the local ramblers!
Author: Emile Fonderson, Managing Director, FE Samuels Property Services. For more information visit www.fesamuelsproperties.co.uk
| EIRE PROPERTY HOTSPOTS |
UK PROPERTY HOTSPOTS |
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Top 10 areas for average house price growth between 2005 & 2006
- Leitrim 29%
Average house price €257,816
- Wexford 18%
Average house price €289,128
- Louth 17%
Average house price €303,533
- Dublin city and county 16%
Average house price €427,343
- Westmeath 16%
Average house price €284,036
- Offaly 15%
Average house price €262,484
- Cork City 14%
Average house price €348,806
- Meath 14%
Average house price €336,959
- Laois 14%
Average house price €256,340
- Wicklow 12%
Average house price €388,827
- Cork County 12%
Average house price €317,973
- Roscommon 12%
Average house price €247,087
(source: permanent tsb/ESRI House Index) |
Top 10 areas for average house price growth between July 2006 & July 2007
- Northern Ireland 54%
Average house price now £225,447
- Central London 15.7%
Average house price now £292,409
- Scotland 14.7%
Average house price now £148,593
- Greater London 10.7%
Average house price now £253,323
- South East (outside London) 10.4%
Average house price now £212,811
- South West 9.3%
Average house price now £200,940
- East Anglia 7.7%
Average house price now £181,409
- Wales 7.4%
Average house price now £154,969
- East Midlands 6.8%
Average house price now £156,512
- North of England 6.3%
Average house price now £134,523
(source: Nationwide) |
Published in the September 2007 Issue of Irish Entrepreneur
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