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Five Ways to Beat the Bubble

Thursday, 19th December 2013

Categories: Sales Market Analysis Property Prices

Author: Kris White

The talk of a housing bubble is undoubtedly making potential purchasers nervous. After all, no one wants to plough their life savings into a house that might drop in value over the next few years and struggle to return to its current, premium price.

However, with property as unpredictable as buses, there’s no guarantee that the bubble will burst – it could keep inflating and cautious house hunters could end up being left behind, or having to pay even more for the same house next year. Here’s five ways to try and avoid losing out:

1. Make it location proof
A popular location will always attract top prices. In good times, buyers will be prepared to pay more; if the bubble bursts, the best postcodes will still attract the most interest.

2. On the up
If you have good local knowledge, you could choose an area that is on the up but still has room for improvement. That way, five years down the line, the houses will be even more desirable and valuable – and should outweigh any negative movement in the market.

3. Do your homework
Check out the local schools – even if you’re not looking for school places, any changes to OFSTED ratings over the last few years are an indication that the school is improving…and the area will quickly follow.

4. Transport links
Is the area on a good train and/or bus route? Are there any plans to improve transport links in the future? Any whiff of a new Tube stop or improved services will send house prices soaring and increase the desirability of your property.

5. Roll your sleeves up
Choose a property that needs extensive upgrading. Although many houses have the cost of renovation built into the price tag, there is still money to be made if you maximise space and achieve a fantastic finish.

Of course, you might decide to play the waiting game and see what happens in the next year. If prices stabilise, you might well be able to save some money, but as for bagging a bargain in London – remember that prime properties in prime postcodes will always be in demand.