It's a tricky time for investor purchasers! The last few months have seen a lot of people contact me to express interest in buying. Many of those have bought at what I'd consider to be 'market rate'. The hardy few who have hung on in search of a deal have found it tough going - there's very little out there for those of us that have short arms and deep pockets!! I'd like to add to my own portfolio, but I'm struggling! This is in contrast to 2012 - there was far more available then. It's equally apparent that when most buyers are in "buying mode" they generally find something quickly - an estate agent sells them something - good deal or not. It almost makes you consider going into sales....
4Why there's a shortage of deals, I'm not sure. There is a renewed enthusiasm for buy to let, certainly - I've got lots of first time landlords coming into the market, and this generates competition for lower priced properties. Estate agents also tell me that the recent government intervention in the market has created an impetus - whilst the banks have finally realised that over lending represents bad business, the government seems willing to plough on regardless(!), which keeps prices at the bottom end of the market buoyant. I've also seen a lot of estate agents talking enthusiastically about auctions. This isn't because they see auctions as an opportunity to offload difficult properties - it's because in recent months auctions have become a way of creating a bidding war between eager buyers - if you look at auction results online, it's hard to find someone who's got a 'steal'!
So where does this leave us? Shrewd purchasers will hang on! Those less shrewd will let an estate agent talk them into paying £130+k for a 2 bed in East Hunsbury. Meanwhile I've just had a landlord pay £47k for a 1 bed flat in town. Irrespective of what happens with house prices if she's got a long term mortgage, she'll clear £250 profit per month on a relatively (by today's standards) modest investment, and as such can't really go wrong. My advice to others is to seek out these deals, and to hold firm until you're happy you have one - don't get pressured into buying a lemon!
We continue to closely watch both the Northampton & Rugby markets and alert landlords to properties for sale that we feel have something to offer. If you're not on our email lists, and want to be, please email me and I'll add you.
4Why there's a shortage of deals, I'm not sure. There is a renewed enthusiasm for buy to let, certainly - I've got lots of first time landlords coming into the market, and this generates competition for lower priced properties. Estate agents also tell me that the recent government intervention in the market has created an impetus - whilst the banks have finally realised that over lending represents bad business, the government seems willing to plough on regardless(!), which keeps prices at the bottom end of the market buoyant. I've also seen a lot of estate agents talking enthusiastically about auctions. This isn't because they see auctions as an opportunity to offload difficult properties - it's because in recent months auctions have become a way of creating a bidding war between eager buyers - if you look at auction results online, it's hard to find someone who's got a 'steal'!
So where does this leave us? Shrewd purchasers will hang on! Those less shrewd will let an estate agent talk them into paying £130+k for a 2 bed in East Hunsbury. Meanwhile I've just had a landlord pay £47k for a 1 bed flat in town. Irrespective of what happens with house prices if she's got a long term mortgage, she'll clear £250 profit per month on a relatively (by today's standards) modest investment, and as such can't really go wrong. My advice to others is to seek out these deals, and to hold firm until you're happy you have one - don't get pressured into buying a lemon!
We continue to closely watch both the Northampton & Rugby markets and alert landlords to properties for sale that we feel have something to offer. If you're not on our email lists, and want to be, please email me and I'll add you.
