Well, there are only 28 sleeps until Christmas (sorry to remind you!). Over the festive period, many landlords make their investment plans for the new year so it may well be a good opportunity to look back over my past articles as they might give you some ideas and some invaluable information.
Well, last week’s article about rental returns in Repton made the phone ring!
The subject of investing in villages for buy to let is an interesting one. In fact it can be as risky as investing in student lettings or HMO’s (Houses of Multiple Occupation where everyone has a bedroom with a shared kitchen and bathroom).
As I keep saying in these articles, investing in the Burton property market is something that shouldn’t been done lightly. For those new to the buy to let investment game, the rental return is the yearly rent from a property reflected as a percentage of the value of the property (one might consider it in the same light as the interest rate from your savings account) whilst the 'capital growth' is the amount the property goes up in value each year reflected as a percentage of the value of the property.
Last week we said Repton property values were 7.3% above the 2007 peak of property prices (before average UK property prices slumped 15% in 2008). However, property investment cannot be judged over short time frames and most certainly not by averages.
Often, when looking at a market for a landlord, I like to take a longer look at the market, and consider 10 to 15 years a more suitable time frame for capital growth. After doing my research, looking at every Repton property that sold in 1999 (and there were quite a few!) and the very same property selling again recently, average property values had risen on average by 227.5% in Repton, whilst in Burton they had only risen by 185.3%.
That's not to say everything in Repton turns to gold! One property in Brook House on the High Street of Repton, sold recently for a matter of a few thousand pounds above the price paid in 2008, the year of the slump.
I pride myself by knowing the market with all its ups and downs, so I can give some great advice and opinion. It might not be what you want to hear but, I can assure you, it is what you need to hear!
We are currently undertaking a mini office refurbishment at the moment so, if you would like to discuss my thoughts on the rental market, feel free to pop through the door of our offices on the High Street and see what we are doing.
You can also call me on 07973 666229 or send me an email to: davidm@professionalproperties.co.uk
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