Council Tax
Choosing a Location - Other Issues
Council Tax
Many purchasers overlook the costs of council tax when calculating their property purchase budgets. This might appear surprising when you consider that the average English council tax bill is more than a thousand pounds per year. However, estate agents often omit council tax information from sales¡¦ particulars, especially for properties in higher council tax bands, arguably because they fear that they might put off potential purchasers.
The other issue of which purchasers should be aware is that different local authorities levy council tax at different rates. Neighbouring authorities may charge significantly different levels of council tax for similar types of housing. The conclusion to be drawn is that purchasers with flexibility as to where they would like to live should look closely at council tax bands and the rates at which council tax is charged, before they make a property purchase decision.
Up and Coming Areas
The property market is rarely static. Although some neighbourhoods are always likely to remain desirable, other locations can improve (or deteriorate) over time. With a little research, the savvy property purchaser can identify areas with potential to enhance their popularity.
Being observant is usually all that is required. Spend time in an area. Ask yourself the following questions:
* Where are new property developments taking place
* Are any new transport infrastructure projects in progress
* Is the local shopping area vibrant or declining
* Are new businesses opening in the area
* Are older properties in the area being ¡¥gentrified¡¦
* Are there plans for additional leisure facilities
* What level of criminal activity occurs in the area
If the answers to these questions are positive, property prices in the area are likely to continue to rise, steadily. If not, you should probably look elsewhere for a property to buy in a more desirable location.
Summary
* Always factor in the annual cost of council tax when making your property purchasing decisions;
* try to identify improving areas with a good long-term future when making a property purchase;
* spend time getting to know the area first, check out the pros and cons of each location, weigh up how these factors would affect your lifestyle.
