|Is this the 21st Century?|
Crossrail and property prices
Now onto the the other point - it is being reported that property prices in areas that have access to Crossrail are set to increase (even above the rate anticipated in the Greater London area with rises expected in reports between 13% and 40%) - is this good?
Well let's have a think about property prices- what is the effect of an increase in your house price -if you're an owner or renter:
|Actually it's only the prices that grow|
a) If you're staying put ; well you might think great my house is worth more you could pay more for some goods and services and you might have higher house insurance bill but generally not too much of an impact.
b) You're thinking of downsizing or moving away from the expensive South East: Well you're premium over other property will improve, you'll be able to get something better or have some more money in the bank, this'll favour older people perhaps retiring or getting a smaller place.
c) You're looking to buy: well hard luck the sort of place you want is going to want is going to cost more, you might have to settle for something less attractive or consider other areas or you might have to wait - this is likely to be the younger group of people if they're currently renting then there's a good chance that the rent will rise too. Alternatively you might look to stretch your borrowing which has it's own risks
d) You're renting and expect to continue to rent: Landlords will look to continue to get the same return on their property value (currently around 5%), or they may decide to cash in on the rising market reducing stock of rent-able properties - you might need to move away or get something less salubrious.This will hit people in jobs where pay is not great or those in the early stages of their careers.
Overall is the rising property market so great- I'm not too sure but the group who will benefit is estate agents.