This Week in Property: The Latest News (21st May 2021)
Take a look at what our CEO Gill Fielding has to say about this week’s property news…
Everyone has a winning goal
Anyone that knows me will know I have two main passions: property and football and whilst I often write about property I don’t often write about football – until today. And that’s because yesterday, Liverpool’s goalkeeper, Alisson, scored the winning goal for his team in extra time. This is only the 6th time in premier league history that a goalkeeper has scored a goal and it was the first ever header. I mention it because week in and week out goalkeepers stand on their line, often with nothing going on and I reckon a fair number of them stand there dreaming of scoring a winning goal for their team in extra time. It’s every footballers fantasy surely?
We all have those dreams. Most people claim to want to write a book and many others don’t publicly share their goal with anyone and it sits there year in and year out being unfulfilled. So let this be the year of getting out of lockdown and fulfilling those dreams and goals. Let’s take Alisson’s example and go and do it. Everyone has a winning goal inside them.
– what’s yours?
When is a boat a superyacht?
I notice that the wealthy are taking to the high seas in their superyachts. This is so that they can continue to travel around the globe without touching land in infected areas and I guess it gives the owners some sense of protected freedom. Lucky them!
And the purchase of superyachts is a massive growth area for the economy and wealthy people have so far spent more than £1bn on superyachts in 2021. There’s also an increasingly active second hand market as the super rich swap their old superyachts for a more impressive one. The three biggest yachts sold second-hand this year were Solo, at just over £54m, Elixir, with an asking price of £33.5m, and Lady Sheridan, with an asking price of £24.7m.
Now a superyacht is defined as being at least 24 metres long and would require a crew and some of them get very large. Prices start at $1m and apparently Jeff Bezos’s yacht cost approximately $500 million – that’s a lot of boat. It is easy to poke fun and to criticise this type of purchase, part of me thinks what better use the world could find for the money. On the other hand these people can chose to do what they like with their money and if they use it to buy themselves some immunity from Covid 19 then I believe that’s their choice. As I always find money isn’t really very important in the grand scheme of things but it does allow freedoms and choices and protection when we need it.
Now I don’t believe we all need to have enough to buy a super yacht but we can all have enough to give us enough money at our own level to create a certain level of protection and choice and freedom – if only we make the right decisions and take the right actions. There’s no point sitting back moaning and criticising these yacht owners, we need to decide to achieve something similar for ourselves.
– Take responsibility and just get on with creating it!
10.2% on average
The latest property price figures have just been announced! It turns out the prices have risen by 10.2% in the year to the end of March 2021. That’s an amazing figure and proves once again that most people’s biggest and most successful asset is the home they live in.
There has been a lot of hype over this price rise figure but looking at property prices over the long term, that’s what the property market always does. There is a fair amount of evidence that the annual property price rise in the UK over many hundreds of years equates to 10.2%. So rather than this past year being special, it is in fact, just average. The word average is important because not all areas will rise at the same rate and not all property types rise the same.
So underneath this 10.2% this year is a price rise of 11.7% for detached houses and only 5% for flats and maisonettes – which reflects the countries mood and trends at the moment. And that’s interesting. Whilst the overall rise might be good for residential home owners, the differences underlying the average figure gives property investors their opportunities and strategic direction. I love watching the market and seeing all these nuances and I rejoice in the fact that property investment as a business is brilliant!
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