Investing in property for most is a long term investment so you should consider what areas could see an increase in your capital invested. Spotting the up and coming areas can be difficult, especially in a housing market where there are so few properties coming onto the market for sale.
A lot of the investors that we speak to are familiar with the areas they invest in. They feel comfortable knowing the street the property is on and want to be confident in the area remaining popular in the future.
Knowing where you are planning to buy is a lot lower risk than looking for the highest yield. High yield buy to let investments often come with a high risk – they may be student housing or houses of multiple occupation (HMO’s) which come with higher running costs and additional legislative requirements to be met before the property can be let.
You should consider a new build property
With the limited stock of property for sale currently it may be worth considering a new build development. Whilst developers are reluctant to offer discounts there can be more choice available. Modern new build homes can command a premium when they are advertised on the rental market as they are energy efficient, neutrally decorated and you would expect minimal repair costs.
For a new build to see capital growth then considering the development and plot is key. It is worth considering the Wellington Place and Ash Holt developments by Redrow homes in Newton.
The location is ideal for commuting to Nottingham and Leicester so will appeal to professional tenants and additionally the large development is planning over the next 5 years to add shops and a primary school to the area. Eventually this will have a footbridge over the A46 giving easy access to Bingham and the amenities that provides.
This will really improve Newton itself and in my opinion see the value of the properties in and around the development increase over the years.
It is definitely worth a visit to the site to see what plots are coming up, we would be happy to discuss the rental potential of any investment being considered – getting the figures right at the beginning is critical to a successful long term investment.
Please give me a call or drop me an email Charlotte Baker 01949 714101 charlotte.baker@belvoir.co.uk
