"Perhaps the most concerning aspect of a property purchase, if it's in a new location, is whether the buyer will ever be able to return to the location they left; or if they'll find themselves priced out of the market and destined to be an outcast should they change their mind.
The most obvious example of this is home owners cashing in their substantial financial gains in London and moving to the country. If you take Hyde Park Corner as the hub of the property universe, the further you move north, south, east or west, the harder it has been, historically, to return, as prices in prime central London outperform everywhere else.
But there are many other moves, where prices rise disproportionately, that can turn out to prevent the possibility of a change of mind.
Retirees who have moved to Spain have found it impossible to re-enter the UK market after a period of years, and statistics show that a third of those making that move want to come home within three years.
Others have moved from the Home Counties to further flung areas such as the south west peninsula, Hereford, Wales or Nottinghamshire and been unable to buy back what they sold within a relatively short space of time.
The problem of course doesn't arise if the decision to move is sound on a long-term basis. But what can seem like a good idea at one stage of life can, in retrospect, look like an error as families grow up and lifestyle needs, at all times of life, change.”
Linda advises a very considered approach to moving location:
“It's so easy to be seduced by the idea of moving to a cheaper area and freeing up cash, or buying more house for your money; but examine the future carefully before you cash in and move out. If you have young children, you may consider a less urban lifestyle attractive; but it won't be long before your children are teenagers, then adults, and their needs may not fit with a small market town or village without easy access to a faster and more exciting way of life.
Stacks' advice for those who are making a move to a less expensive area includes:
- Don't rush into your decision; take plenty of time to consider the pros and cons, and whether your requirements will change again in the long term;
- Talk to other people who have made similar moves for similar reasons; don't just focus on the good bits, listen to any regrets they have, and what (if any) the downsides have been;
- Try not to burn your bridges. If you can leave a lifeline in your original location, maybe in the form of an investment property, you are hedging against sky-rocketing prices and giving yourself at least a foothold that you could return to;
- Be careful about what you buy in the new location. If you buy a very good property in an excellent location, the value will hold up better against rising prices in the location you're leaving and any gap will be smaller.
- You will further close the gap by spotting opportunities to add value through extending and refurbishing, especially if you buy in an up-and-coming area
- A move of this kind is a bad idea if one member of the family wants it while another member is against it. Solidarity is important for dramatic moves.
