I often get asked by Landlords which type of property should they invest in and the answer can vary depending on the circumstances of each individual.
Property investors should always have an eye on how they plan to exit their investment so it can be useful to see what type of property performs best in adverse conditions. I have done some research on this and found some interesting results.
In Jan 2005 the UK housing market was in boom mode, without an inkling of the financial crisis that would sweep the world a couple of years later. Five years later, at the beginning of 2009, the UK property market was at the bottom of its slump but how did this affect local prices?
Surprisingly, in Bracknell, terraced houses and flats were still 14% higher in 2009 than they were in 2005. However, Semi-detached properties were 7% lower.
This trend is repeated in Wokingham where flats were 7% higher and terraced houses were surprisingly 22% higher. Semi’s were only slightly down by 2%.
So what can we learn from this? Firstly doom and gloom headlines based on national figures should be taken with a pinch of salt. You should always look at local trends as they may be totally different to the national picture. Secondly, it shows that smaller properties fair better in a crisis and there are various reasons for this that I would be happy to discuss with anyone interested.
Belvoir Bracknell don’t sell property, we are lettings specialists, but we do guide people based on our experience as to what might make a good buy to let property investment in the Bracknell, Wokingham, Crowthorne and Binfield area. We don’t charge for this service but we would like to manage your property or help you find great tenants.
