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What is property value?

08/12/2011

Don't confuse the long term value of all property with the short term effects of credit boom.

Don't confuse the long term value of all property with the short term effects of the credit boom and bust.  Over the coming years and months the value of everything will fall back to a base level, or utility value.  In fact people will switch from valuing on a "wants" basis to a "needs" basis.  Translating that to property means that a hand made kitchen will not necessarily add its installation value to the property.  What I'm saying is that the value of everything willl fall from Cornflakes to property over the next few years.  I suggest that long term property values wont fall quite so far, which I consider to be one advantage of investing in property.   Andrew Ireland MRICS