Many people are debating as to when average UK house prices will bottom out? They are hoping to purchase a house at the lowest possible price.
The main questions people need to answer is where should I buy and how much can I afford to spend?
You need to consider the following:
- How much can I afford to spend without creating financial pressure?
- What type of property do you want to purchase for eg a flat, house and how many bedrooms?
- Where should I purchase a home?
In reality not all people can afford to purchase in London and this may not necessarily offer the best property deals. The hardest decision for house purchasers is where should I purchase a property?
Non investors must consider the following when determining location:
- What is the best location in terms of living conditions?
- Which location offers the best property deals?
- Is quality of life or return on investment more important when purchasing a home.
For investors it is an easier to select the location as all they need to consider is ROI (Return on Investment).
There are many theories as to where you should buy a house, most people know that property location is vital. Location is important regardless of the strength of the economy.
The areas where there is a high concentration of households at considerable risk of house repossession, is a good place to consider purchasing a property. If there are many people at risk of home repossession within one locality, this is likely to increase the supply of houses onto the market.
Then there will be high supply and relatively low demand. This in turn should lower house prices, resulting in an excellent investment. Households can sell their property when the economy improves for an excellent profit.
This map above shows the areas in the UK where there is the highest concentration of people at risk of financial problems in a recession:
We would like your thoughts on the best places to buy a UK property in a depressed economy. Assuming that your primary consern is to maximise return on investment.