Q & A
EXECUTIVE DIRECTOR, DOUGLAS & GORDON
Q I have around £350,000 to invest. What should I spend my money on?
A It appears we’re starting a new credit cycle and mortgages are easing up. Over the last few years, it has been traditional, low loan-to-value (LTV) properties – family houses – that have been in demand. We are seeing rising LTV rates, which imply that credit is easing and one or two bedroom flats are going to be in demand. From a rental perspective, it is the smaller units that are easier to let, so a good one bedroom flat in the best location you can afford would seem to be a better bet than a bigger house in a less attractive location. If rental return is not the objective, long term trends suggest capital growth is greatest in houses and, of course, you can grow into them and avoid having to move a couple of times and pay the attendant Stamp Duty Land Tax (SDLT) costs. Lifting your borrowing will make more central postcodes an option, too, even if you don’t get as much house for your money.