A landlord called me up this week to discuss the
affordability of property in Eastwood, with the current regional property
market being generally in recovery with increasing house prices. The best
advice I can give to those looking to invest in property is one of our secret
tricks of the trade. You can judge the affordability of a town by simply
finding the ratio of the average property price to the average salary. The
lower the ratio, the more affordable property is.
When we put this to the test, we found that Eastwood
currently has an average property value of around £142,500 with the average
salary being £19,675. This is a respectable ratio of 1 to 7.24. Meanwhile
across the motorway in Hucknall, the ratio of property values to salary is 1 to
7.77, which suggests the property in that town is 7% less affordable than in Eastwood.
Both towns compare favourably though to the overall average
of Nottinghamshire where the average property value is £157,600 and the average
salary is £18,892, giving a ratio of 1 to 8.34.
This means that property generally in Nottinghamshire is a
rather significant 13% less affordable than Eastwood, with a ratio of 1 to 8.34.
This could mean that now is a brilliant time to invest in Eastwood’s
property market, while the average value of property is low compared to the
average salary. If you would like to talk to us about your potential investment,
please come into our offices.
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