Our houses are, first and foremost, homes

06.06.16

The property market is full of false beliefs – make this summer different and don’t lose site of what’s important

There’s no rational reason to expect property to always be a sound investment. As with stocks and shares, it’s the starting point that matters most. Both have proven something of a disappointment over the past decade - over-promising and under delivering.

A similar process has unfolded with residential property – a salutary lesson being the buy-to-let binge – which has left us with a glut of unwanted new-builds cluttering up the market. The illusion of housing wealth has also prevented many of us from noticing that we’ve been struggling to maintain our standard of living, as real incomes have stagnated over the past 30 years. Given that the housing market rarely spends any time at ‘the average’, your house will always be either ‘over’ or ‘under performing’ the market at any given moment, so don’t get too anal about it. In the end, you’re looking to get the best mix of financial and family outcomes from your property choice.

If there’s one thing we can be certain of – it’s another boom-bust cycle. Perhaps next time around we can look further ahead and hatch a smarter plan – re-calibrate our expectations to more realistic levels: save more, value what we already have, and spend more time and money on productive investments with long-term value. Our houses are, first and foremost, homes, places where our lives are lived or missed, and in the end, our years of family fun will massively outweigh any financial leg-ups we may achieve along the way.

Abode Affiliates

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  • Habitat First Group
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  • Blevins Franks
  • Luxury Italian Living
  • Gama Property
  • Moore Stephen
  • Jumeirah
  • Touch Design Group
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  • St Francis Links
  • London Fractions
  • Cyan International Properties
  • Crane Resorts
  • Dominic McKenzie Architects
  • Rosemont Consulting
  • The Hideaways Club
  • Monaco Real Estates
  • Enigma Yachts Limited
  • Luxe Caribbean Properties
  • Isle Blue
  • The Coastal House
  • Unique Home Stays
  • Harry Manning
  • CID
  • Chamonix Ski Chalet
  • Destinology
  • Ibiza Transit Express
  • Edenhurst
  • Worldwide Dream Villas
  • Heron Real Estate
  • Coldwell Banker
  • St Edward
  • Wings
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  • Alexander James
  • Strutt and Parker
  • BDO
  • Ultra Villa
  • Panorama
  • Yoo
  • Cornerstone Tax Advisors
  • Knight Frank
  • Smart Living
  • Alleyne Real Estate
  • Dost & Co
  • RDO

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