Saturday, November 26, 2005

New-build flats not the ideal property investment

Property funds lure pension investors - Money - Times OnlineThe Sunday Times September 25, 2005

Firms are touting plans that gamble your retirement pot on the housing market, writes David Budworth

COMPANIES have been cashing in on the growing appetite to put buy-to-let into pensions with the launch of several residential property funds in recent weeks. From April 6 next year - A-Day - investors can purchase buy-to-lets and holiday homes with their personal pensions for the first time. "

But it is a later part of the article that caught my interest...

"However, investors should beware the hard sell by developers. Stephen Ludlow of Ludlow Thompson, an estate agent, said: ?While completed properties in new developments may initially fetch 10% to 15% more than older properties, they can lose their premium within months, rather like a new car as it leaves the forecourt.?

The average price of a new-build flat or maisonette slipped 1.2% in 2004 because of a glut of supply, while all other types of property rose in value by an average of nearly 12%, according to Land Registry figures."

Chris Bell

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2 Comments:

At 5:05 pm, Blogger Stussy88 said...

you could invest in commercial property in the UK with major corporate tenants on long leases. Check out www.berkshirekeble.co.uk for details.

 
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