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Is Jersey
still a wise
Choice Properties
Choice Properties
Whilst the UK property market has experienced some and unquantifiable bonus. ‘Buy to let’ mortgages
volatile peaks and troughs over the last few years, the usually require between 20% and 30% deposit from the
Jersey market has been remarkably stable. During the purchaser and thus enable the investment to trade a
previous two year period, Jersey house prices further 70%-80% (not dissimilar to the derivatives
increased by a total of approximately 6%, which was markets – but an awful lot safer!). If proposed changes
closely in line with inflation. This plateau effect to the migration policy are approved, the whole
proved to be a very positive factor, as 2006 has now system of residency will be simplified and, demand in
seen the market steadily strengthen, signifying a the rental market should remain strong, which is
healthy market in which it is worth investing - as excellent news for the residential property investor.
opposed to an aggressive bull market where gains are As far as one’s private residence is concerned, many
rapid and excessive and are usually followed by an are now considering their bricks and mortar a
almost inevitable correction. provision towards their pension, either by way of
downsizing their home at a later date, in order to
The great thing about the local property market is that release a lump sum, or by being the vehicle which will
Jersey has a stable and solid economy and demand provide the means to raising funds for further
should always be healthy, as supply is limited on investment and hence income, or to help the next
account of the natural geographical limitations of an generation get on the property ladder during their
island of just 45 square miles. lifetime.
In terms of investing in residential property, whilst As with any investment one must have complete trust
yields tend to be around the 5% level, one must never and faith in one’s broker and, property is no exception.
underestimate the potential capital appreciation of the When selling a property, it is important to choose a
underlying property investment, which is an added professional company who will provide honest advice
20/20 ten
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