Interest is high - in Cornwall at any rate

Posted on July 6, 2007
Filed Under Home & Property |

Interest rates went up again yesterday. While the news was full of tales of homeowner woe, I was quite happy because I have no mortgage, no plans to get a mortgage and I’ve got a little nest-egg of money put away. I can’t gloat too much, however, as the nest-egg is not the result of careful saving over the years but mostly a windfall from a couple of years ago when my mum passed on some money from my dad’s estate. It is part of the reason why I have been able to make the life changes I have made now, and barely a day goes by when I don’t think about what my dad would make of them! We are very alike - he would understand.

I have never been particularly keen to own a home, although I have toyed with the idea briefly in the past. Unless you can buy outright, I see “owning” a property as more of a curb on your freedom than a ticket to wealth and security. Being a property developer is different. That’s like a job and there is money to be made, especially in today’s climate. But just buying a house to live in seems inordinately expensive, frustrating and not worth the trouble. Most homes are over-priced anyway (although the Undercover Economist that I have been reading would probably say that there is no such thing: the price is whatever the market determines, based on scarcity).

Cornwall is a case in point. The number of people buying second homes in the area continues to rise and locals are being priced out of the market. In the building I live in, there are only a couple of resident owners. The others either rent their flats out to people like me (young professional types) or use them as weekend retreats. Developers in Newquay are capitalising on the trend by building apartments all over town, from luxury to pod-size, and there is a lot of local resentment about this. Personally, while I recognise the problems people have getting on the housing ladder, I don’t think the situation is all bad. These developments bring money into the region and locals can benefit if they put their minds to it. A recent report from South West Tourism shows that visitors are spending record amounts of money in the region. Moreover, the scope and reputation of Cornwall as a holiday destination is changing. As an article in this week’s Newquay Guardian puts it:

“The county’s tourist industry is changing from bucket and spade–although that still has an important place–to surfboard and seafood.”

This is a big part of what drew me to Cornwall and is something I am keen to tap into entrepreneurially as well. As I walk around Newquay I can see the truth of this observation all over the place. The kids are carrying bodyboards instead of beach balls; everyone is dressed in surf clothing brands, whether they surf or not; the sea is full of people bobbing about in the shallows trying to get to grips with surfing. I have noticed that women’s magazines all seem to be running ’surfer chick’ fashion spreads this summer and the first thing that taxi drivers will tell you about on the way from Newquay Airport is Jamie Oliver’s Fifteen restaurant on Watergate Bay.

Cornwall’s rep as a funky tourist destination could be further boosted by a new TV surf drama starring Jason Donovan and Martine McCutcheon which starts filming in my backyard of Watergate Bay next week and will apparently be on our screens early next year. The “exciting new twist” element is that the series Echo Beach is being filmed alongside a spoof ‘behind the scenes’ programme called Moving Wallpaper featuring the fictional producer of Echo Beach, played by Ben Miller (whom I once met in the ADC bar in Cambridge). Hilarity ensues, I’m sure. Although it’s written by Eastenders creator Tony Jordan, the whole thing could backfire - anyone remember Eldorado? So let’s hope they don’t make the same mistake. Anyway, the weather seems to be clearing up so they won’t have to shoot the whole thing in the rain. I will bring you news of filming if I catch any.

So Cornwall is on the up! But let’s hope that this interest rate rise doesn’t result in too much of an economic slowdown. We wouldn’t want city folks cutting down on their long surf weekends now, would we?

Stumble it!

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