I think it’s prudent to know the answer to this question… As opposed to buying based on yield, sometimes it is worth considering your exit instead. You may have heard the saying ‘you make your money when you buy, not when you sell’.
Knowing how saleable a property is, can be half the battle when deciding what to buy for your next property investment. Why? Well because one day, you may need to sell that property.
Just last week, a couple we know from Cressage contacted us for our opinion on buy to let properties in and around Shropshire. Their concern was if we have another property slump (and we will because that is what has happened to the British property market ever since the 1950’s), if they did need to sell, what type of property would be easier to sell. Now everything sells, even during a slump, but I did some research and followed up their query…
A good guide to judge the saleability of property is the number of properties for sale, compared to the numbers that are sold (subject to contract). I carried out this comparison last week, so the numbers will be marginally different today, but of the 66,608 households in Telford and Wrekin there are 2,556 properties on the market listed for sale. Of those 2,556 properties, 1,761 properties are fully available on the open market waiting for a buyer and 795 have buyers and are sold subject to contract. That means 31.10% of property on the market has a buyer in Telford and Wrekin.
However, when I investigated further, roughly 31% of detached houses on the market in Telford & Wrekin have a buyer and great news for semi-detached property owners, as roughly 38% of them have buyers. Terraced houses fair even better, with 174 of the 573 on the market now having buyers. The properties that appear to be sticking though are apartments at a comparatively lower 19% and bungalows at 26%.
I am always giving advice to my existing and new landlords in Telford on what to buy (or not as the case may be). Having this detail of information at my fingertips, allows me to spot trends in the local market, which then enables to me to give the very best advice to my clients. I don’t charge for that advice as I have plenty of opportunity to earn money by finding the best tenants for my landlords in the years to come on the investments I have advised on.