Well my Cardiff Bay Property Blog reading friends, I to wish to answer a question emailed into me from a potential Cardiff Bay landlord last week. Nice chap, lives in Lisvane, and it turns out, after having a coffee with him, he works in IT, has a spare bit of cash (now the kids have flown the nest) and wanted to buy his first buy to let property.
His main question was … Do I buy a freehold house in the Cardiff Suburbs or a leasehold flat in Cardiff Bay?
The Council of Mortgage Lenders (CML) latest snapshot of the buy to let mortgage market shows us that buy to let landlords haven’t been put off by the Chancellors announcements on the way buy to let’s are taxed.
Many landlords have been asking me my thoughts on the Cardiff property market recently, and in particular, what is happening to property values. My calculations show property values in Cardiff quite interestingly grew in the month of September by 0.2%. When one looks at the annual growth, Cardiff values are 3.7% higher (when comparing Sept 14 to Sept 15). However, there are signs that the fundamental growth of property values in Cardiff has now peaked, despite those average property values being below levels recorded in 2007 (just before the 2008 crash).
The 5th of March 2009 was the date Mervyn King, the then Bank of England Governor, slashed UK interest rates to the unparalleled figure of 0.5%. In just under five months, starting on 8th October 2008, the rate had come down from 4.5% to that low figure, all in an attempt to ensure the British economy survived the worldwide credit crunch. Nobody expected that, over six years later, rates would still be at that low level.