Exactly where you choose to live to can make a huge difference to what you pay.
Within an area like London, a house in trendy Islington will cost two or three times more than its neighbouring boroughs.
Be careful of buying somewhere near a trendy area which ain’t actually in it.
There is a theory of “shrinkage and expansion” whereby during boom times the borders of hot spots like Islington will expand. Houses that are really just outside it will be labelled and sold as being in the hot area.
However during a recession these “borderline” houses will lose the most value as it becomes clear in the cold light of day that no, Mr Estate Agent, this road is not in Islington. Doh!
A petty but safe guide is to follow the postal code. If you are on one side of a street which has the right postal code whereas your neighbours opposite have the “wrong” postcode then your home will be worth that much more when push comes to shove.
Bear in mind the differences in price of being just in or just out of a fashionable area in this regard; during recession you can buy cheaply – and sell for more when times are better. But if you buy such a property at the height of a boom you may lose out.
On this subject, check out some tricks used by the professionals to get the most money out of you for the minimum spend.