This blog follows the buy-to-let market in Ilkeston, Eastwood, Heanor and Belper. You'll find properties on here that may make decent investments. You'll also find tips, guidance, and analysis that relates specifically to these two towns. I operate Spruce Tree Lettings, opened since 2009, in all these towns, so if you're thinking of buying a property to let in either Ilkeston, Eastwood, Heanor or Belper, I'm happy to offer a second opinion.
Friday, 23 May 2014
Ilkeston and Belper property prices .. the long climb back to 2007 prices
Some landlords have been speaking to me recently about
stories in the press and their concerns about booming house prices and the next
housing bubble in Ilkeston or Belper. In the past few years, if you
were going to be buying in Ilkeston or Belper, it was vital to ensure that
you built in some capital growth by buying cheaply or finding a way to add
value. In the last six months, properties in both towns have risen by
between 2% and 3%, some even have been going for their ‘full’ asking prices, so
are properties too expensive.
Over the last few months, the value of those 2 bed starter
homes in Shipley Common area of Ilkeston (I choose them because everyone
knows them) have nearly returned back to the same level they were selling in at
the 2007 peak of around £80,000. So are we nearly back to the boom prices /
values of 2007 then?
Yes and No. Yes, the headline price for the property sells
for is the same figure (ie £80k in 2007 and £80k in 2014), yet No, because
these headline figures don't take into account inflation. Since 2007, inflation
has risen by around 19%. If ‘2007 property prices’ had kept up with
inflation, that same 2 bed house wouldn’t be £80,000 today but £80,000 plus 19%
inflation which equals £95,200. Most people think inflation is a bad thing,
eating away at the real value of your savings. It can however, be advantageous
to property investors.
My answer to landlords is get the best advice and opinion
you can. Speak to me, speak to others, do your homework and drive a hard bargain
when buying, thus ensuring when prices do start to rise again, you are in pole
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