Why is this company/individual so anti property?

publication date: Feb 11, 2010
 | 
author/source: Kate Faulkner, Property Expert and Author of Which? Property Books
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Why is this company/individual so anti property?


So here's is the final part of the article, which follows on from 'Is this the trend of property prices in a crisis?' .....

Well it’s only when you get down towards the bottom of the article that you realise that they appear to be as biased as the property professionals that they keep having a go at! It would probably be as easy to re-write this article as ‘what the financial investment community doesn’t want you to know’!

Here’s their final advice and what we think of it:-
“In the circumstances, our advice is simple. If you’ve already got a home, you’re happy there and you’re comfortable with your mortgage debt, don’t do anything. Just enjoy your home – and if you’re on a tracker mortgage enjoy the record low interest rates.“

My thoughts: good idea, I don’t really try and sell anyone anything apart from independent information, and as an independent commentator, if you are happy where you are, stay put. 

“But if you’re thinking about getting onto the ladder, or of upsizing, then I’d urge you to think again.”

Yes, you need to be careful, but if you are staying in the property for five or more years, even by these guys scare mongering tactics, it’s OK to get on the ladder or upsize. They also seem to have forgotten to mention that if you sell a property for 10% less than it was worth 12 months ago (eg sell at £150,000 for 10% less, lose £15,000) and buy a more expensive one for 10% less (eg buy at £250,000 for 10% less, you save £25,000) you actually benefit, in this case by £10,000.
  
However, here is the bit where I think their advice and analysis of the property market is just a lead to sell you the idea of investing your spare cash in finance rather than property:-

“Best of all [if you don’t invest your money in property] you’ll be able to invest in other, lucrative sectors that the smart money is piling into today. You’ll find all the details of MoneyWeek’s Top 4 investments for 2010 – including one ingenious China play that’s all set to make early investors a FORTUNE – coming up.“

So, not perhaps as independent as we all thought? Basically, this appears to have been put together to get you to subscribe to their magazine and then sell you ‘MoneyWeek’s Top  4  investments for 2010’ as opposed to put your money into property.
 
Personally I think that’s your choice, not theirs. I always recommend you visit an independent financial advisor to work out what is the right way for you and your family to invest your money. It is a good idea to compare pensions and other financial investments versus property.

And, with regards to what is going to happen in the property market, the truth is we’re not sure. We don’t know which government will get in, we don’t know how the cuts in government spending are going to hurt the economy and we don’t know what will happen to interest rates and how difficult people will continue to find it to borrow money from lenders at an ‘affordable’ rate.

So, my advice, read everything you can, work out how it affects your property market locally and always check what people are selling before you decide how much notice to take and check how accurate they have been in the past!

If you need help with a property problem or have a property question, then email us at enquiries@designsonproperty.co.uk or tel 0845 838 1763 for an independent and unbiased answer.
 
 

 


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