York Homeowners have made an annual profit of £9,737 since the Millennium

It feels like only last week I was planning my 2019 goals and aspirations which include dropping a stone in weight, running five obstacle courses across the UK and posting more content across my York Property News and York Life banners as well as a number of other professional and personal goals I will have achieved by the end of this year.  This all takes an active effort.  Being an active person (generally), I do love to know that I have a passive income coming in from somewhere in the background, so it’s no wonder why I’m an advocate for Property Investment, especially in York, where the average York homeowner, having owned their property since the Millennium, has seen its value grow by more than 254%.

Chess step

 

Given some of this average growth will span from uplifting/flipping properties but we can’t forget how powerful property investment is, in terms of leverage as well as it being an inflation-beating asset class.

Taking a look at the different property types in York, and the profit made by each type, makes interesting reading…

 

Figures

It may come as no surprise that the biggest profit earner was the York detached homes and the least profitable type of property to own being flats and apartments (interestingly by a factor of 1.51/1).

Whilst property is an inflation-beating asset, adjusted for this, utilising the Bank of England inflation calculator, this paints a slightly different picture for York homeowners.  Since 2000, the true spending power of that profit has invariably been lower.

Figures 2

 

So the ‘real’ value of the profit, after inflation, in York has been £7386 per year… Better than a kick in the teeth eh?

inflation

One question which I keep getting asked is what’s happening in the York property market.  For the avoidance of doubt, the York property market has had and will continue to boom and bust whether it be on an annual or periodic basis of 15 – 20 years.  Certain Economic factors will influence what happens in the property market but in my experience and as I keep saying, the ones who succeed at property investment are those who invest for the medium- to long-term.  If you don’t believe me, let’s review in the next 18 years i.e. 2036 and I trust that my 52 year old self will enjoy a nice slice of humble pie.


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