7th October 2017
Everybody likes a free hand out. However, in the realm of property, handouts are getting slimmer and slimmer. On the contrary, many in the industry would argue we are positively facing persecution by the government. The recent changes, which apply to high rate earners, mean that one will be paying tax on money not even being earned. It is a tax applied to the turnover and not on the profit generated by the property; and that’s without going into the numerous back to back hikes in stamp duty.
Pre 2007, one could purchase property purely with an intention to do so. Money was not a necessity or even a requirement. In fact, you could purchase a property with no money and even receive a cash back once the deal had been done.
Only ten years on, and the environment has changed considerably. Now, certainly in London, you would need a 30-40% deposit, due to the high rental cover used by BTL lenders.
The government has clocked on that the property industry is making too much money, and wants a piece of this pie.
The point being is that now, in the property market, it is extremely difficult to find a free handout. However, they do exist, if you know what to look out for.
Human nature is such that most of the population go forward whilst looking in the rear view mirror, in life and investment. This applies to property as well. It takes time for people to buy into, and see, the vision.
The government has various schemes to regenerate areas. This means investment in bringing up whole tracts of areas in a holistic manner, which includes transport. This perhaps being the most important aspect of a regeneration plan, transport connectivity.
By identifying these areas, you are in effect using government money to uplift your investment, by riding off the millions and billions they will be pouring into the location. This requires foresight, and a buy in of a vision presented by the planning authorities.
Wembley has seen massive regeneration over the last decade. The writing had been on the wall for all to see and react long before any of the plan manifested. Average property prices ten years ago were £280k, currently the average price is £437k. In 2000 they stood at only £138k. Over the last ten years they have increased by £16k per annum.
New build one bedroom flats are currently being sold for £420k, with two bedrooms selling for £535k. They are being advertised as being only 12 minutes away from Baker Street.
There still seems to be mileage in this location, as the average price for homes is still below the £500k mark, and it has as an enviable closeness to central London, both from Wembley Park and Wembley Stadium Stations.
A few things have happened here to raise the prices, for example, a prominent French school has opened up in the old Brent Town Hall. This had the effect of raising prices in Kensington, what to speak of Wembley Park. Also, the station has had a major overhaul and now has the capacity to take 22,000 people per hour. Wembley also benefits from having a forward thinking leader of the council, Mohammed Butt; who wants to ensure it is well known that Brent is open for business, and is actively working with developers to ensure the council is not seen as an obstacle but as a partner.
Suresh Vagjiani
