Managing Director Vince Garvin says: “buy-to-let is not a ‘get rich quick’ scheme and investors should be wary of any such claims made by investment companies. In my opinion, anyone seriously considering buy-to-let as an investment tool should do their homework and understand that you are in it for the long term.”
Vince continues to explain that reviewing property values in the short term will give a distorted view of the market and urges would be investors to make use of the many resources available to review property price fluctuations in specific areas over a longer period of time. Land Registry figures are collated every three months and show that over the past ten years, property prices have seen about 40 price movements and in most cases, the upward movements in prices are closely matched by either stagnant or downward movements. Even though on a month by month basis property prices in any area of the country will go up, down, or remain the same, over a period of the last ten years, property prices in general have risen in value by an average 350%.
“Reading some of the recent press articles can lead you to believe that the market is about to burst, because they are just providing information about prices in a relatively short term,” comments Vince. “One of the main reasons for getting involved in property investment is to enjoy the financial benefits of capital growth, which can only be realised on a long term basis. Statistics show that property prices do fall from time to time but they also go up again and, generally, when they do, they rise to a level that is higher than they were previously.”
Affinity’s advice to all potential property investors is to start by asking a number of questions: What are you buying? Where are you buying? and Why are you buying? The company says that detailed planning is extremely important and any property investor should have a strategy for building a successful property portfolio. Affinity offers potential investors free independent advice to help people make an informed and educated decision.
Despite seasonal and periodical fluctuations in property values, Affinity says that properties in England have doubled in value, on average, every five to seven years. A property purchased in 1997 for £100,000, with 40 value changes in between, both positive and negative, could still be worth around £200,000 today. The only time owners would see a loss in value, is when prices are a reviewed on a daily or monthly basis. This method can cause people to panic and sell properties for less than they should have, if they waited for the right time to sell.
“One of the difficulties when people first start to look into property investment, is finding a company that can give independent advice you can trust,” says Vince. “There are lots of advertisements that talk about becoming a Millionaire fast and some organisations ask for payment up front. My advice to that is, run a mile! There is lots of good information available free of charge and I believe that there is absolutely no need to make any payments, until you are buying a property.”
Today, the market is at a standstill in most parts of the country and in some areas property values are dropping. Affinity believes that it simply means that people can buy more property for slightly less money, making it a good time to buy, but a bad time to sell. “I’ve been involved with property investment for more than 25 years and I believe that you can get everything you ever dreamt from it, providing you approach it in the right way,” comments Vince. Potential investors seeking further information can contact Vince Garvin at Affinity on tel: 0207 464 4123 or by emailing: [email protected].
