Property investment has undergone a whirlwind of changes over the recent years. With changes in tax laws for buy to let landlords and stamp duty increases, investors are being squeezed more now, than ever before. So what does this mean for Derby property investment?
Although the property market is changing, the principles of property investment are still pretty much the same. Irrespective of a ‘crackdown’ on landlords, property location and purchase price are still the major factors which come to the forefront of property investment, whether you’re a landlord or looking to ‘flip’ property.
In an ever-changing market, the challenge then becomes finding the lucrative property hot-spots. Over the years, London’s property market has been booming, even on an international level. A recent RICS report suggests that changes in tax, along with Brexit have ‘killed the London property market’. Although we’re not experts ourselves in the London property market, it’s clear to see the paradigm shift in where investors are flocking to buy, especially when we are experts in the Derby property market.
Is Derby a good place to invest?
I’m personally asked this question at least fifteen times a week by investors who don’t live in Derby (at least 10 from London on average). After being in property for seven years myself, I’ve never experienced so much ‘outside’ interest in Derby than I have now. It’s clear to see that London has lost some popularity with investors. This is perhaps as a result of high entry levels and low rental yields. In addition to Brexit and international investors withdrawing selling UK stock. That said, if prices have dropped in London, it could be a great time to buy there. To be a great investor, you have to spot the opportunity, even when all you hear is doom and gloom.
Derby property investment can still allow for 9% yields and sometimes even 10% plus (if you play your cards right). For instance we recently sold a house converted into 2 self contained residential flats for £90,000. We currently manage the property and fetch £9,240 per year in rental income. That’s a 10.27% yield! In my experience, getting these sorts of rental returns in other areas is few and far between. The investors aren’t Derby residents and follows an emerging pattern of what we’ve seen in the Derby property market.
Derby property investment made easy
As we’re landlords ourselves, we’ve been actively investing for a number of years. Furthermore, as local Derby estate agents and Derby letting agents, we’re aware of the areas which are great for renting property and reselling. We’ve helped many investors who have been local, outside Derby and even overseas to secure great deals providing solid rental returns. Each area in Derby has it’s advantages. Depending on what your strategy is, an area could be better suited to your goals.
If you’re interested in the Derby market and would like the expertise of a Derby letting agent, then do get in touch. We’re happy to offer you a consultation either in person or via phone. We can then discuss your strategy and guide you on where the hot spots of Derby are. After all, we’re in a unique position, as we see what works and what doesn’t on a daily basis.