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Updated: Nov 26, 2020

Don't Nest! Invest!

Following the many ups and downs in the property market this year triggered by the political disputes of EU-negotiations, many people are ‘holding tight’ when it comes to buying property. House prices over England and Wales this autumn have not seen an increase in what has been known to be the ‘autumn bounce’. For the first time since 2010 prices have continued to slowly decrease and an analysis by accountancy firms suggests a nationwide decline of around 6% in 2020.

Despite properties not selling as well, the prices are marginally cheaper because no one wants to buy at this time of political uncertainty. But as we all know, after any crash or decrease in the market, there is always a ‘boom’ or increase to follow. When sellers become more motivated they are open to negotiation. They will end up selling their property for cheaper. When the market continues to fall (as a result of a no-deal Brexit or if negotiations are extended) sellers will become more motivated if they haven't been able to sell and there could be some excellent deals for us investors.

It's the same way we choose to invest in stocks and shares. An intelligent investor will buy stocks when the market is in a deficit, so they can sell them when they have risen again. The property market is the same. Buy when the market drops, and sell when the market is booming.

It is an exceptionally good time to invest in property if you are choosing to purchase long-term assets to add to your portfolio. For example, if you are able to buy up HMO's and Single Lets which are selling cheaper as a result of the current drop in the market, you will not only benefit from passive income but inevitable capital appreciation. When the market booms again, the value of your property will be marginally higher than what you purchased it at. Further more, there is ALWAYS rental demand for property in the UK as we are an EVER GROWING population. People need places to live and having a passive income from rentals in your portfolio will guarantee you financial stability in uncertain times ahead. This is until you can once more benefit from capital appreciation and sell or refinance your property for a higher price you paid!

But where can these cheaper HMO's and Single Lets be found?

Some of the cheapest places in the UK to buy property is in South Wales. Many people choose to come to Wales to buy up property because of its attractive property prices and in these uncertain times, property prices are set to drop even lower.

Asides from the breath-taking countryside and attractive prices there are many more benefits to investing in South Wales.

Firstly, there are many on-going developments in South Wales that could boost its market dramatically. One of which, is an extension of the railway, making the more rural and beautiful parts of Wales much more accessible for commuters to live.

‘Calls have been made to extend two railway lines in the south Wales valleys as part of the £738m South Wales Metro project. Plaid Cymru councillors in Rhondda Cynon Taf want to see the Treherbert line extended to Tynewydd, and the Aberdare line extended to Hirwaun. Members agreed to give the idea a closer look, after being told it would boost areas suffering from deprivation. Transport for Wales (TfW) said it would consider extending lines in the future. The metro project promises more frequent services on existing networks, plus the introduction of trams and some new stations.’[1]

Severn Bridge Charges Abolished.

Further more, the costly tolls of the Severn Bridge charging commuters £5-6 every time they drive into Wales has been removed. This means South Wales becomes a much more attractive place- due to price and convenience- for Bristol commuters to buy homes. House prices in and around Bristol fair much higher than those in South Wales, and many people may well choose to move to save money.

South Wales is home to Britain's most beautiful holiday destination.

Due to our EU exit date on the horizon, many people's regular European holiday destinations are going to become more and more expensive, meaning a UK holiday may be more financially appealing to lots of people. What better time to start a serviced apartment in the booming city of Cardiff? Or on the golden coasts of the Gower in Swansea which has been named one of the most beautiful beaches in the country. UK holiday destinations will attract higher numbers of visitors whilst European negotiations continue, an excellent opportunity to invest in.

Over 66,000 Students inhabit the City of Cardiff

The city of Cardiff is home to 3 University campus’s meaning there is around 66,000 students choosing to live in Cardiff and spending their student loans in and around the city, aiding to the economic expansion of Wales. Many of them are also looking to become first time home owners in and around the city after they finish studying.

Therefore, investing in long term assets such as HMOs and Single Lets in South Wales could be considered a particularly attractive investment. Compared to other places in the UK, the buying in prices are very low, there is plenty of room for capital appreciation when the market 'bounces back', as well as South Wales growing economically and catching up with the rest of the UK.

Apollo Property Sourcing specializes in finding the best below market value deals in and around South Wales that provide fantastic return of investment. With excellent relationships with property professionals in the area we can help you find a great asset in a time of political turmoil and uncertainty.

Please get in touch if you would like to join our VIP investors list for the best deals in South Wales. 😊

Thanks for reading.



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