Best places to invest in property – a hot tip for the canny investor?
The Chancellor’s recent announcement, that Stamp Duty on second properties is due to rise by 3% on completions on or after 1st April 2016, has generated a flurry of enquiries from would-be investors keen to snap up a deal (or two) before the new tax year.
For those looking to invest in the East Midlands, my current top tip is Peterborough which according to Zoopla has seen prices increase by 7.95% in the past year, higher than Nottingham, Northampton and Corby (which one day may shrug off its poor reputation and become an investors hot prospect..). In terms of rental yields Peterborough, according to Zoopla, is outperforming all its rivals with two bedroom properties (average value £126k) achieving around 5.8% gross yields.
For the more adventurous investor, there are HMO (Houses of Multiple Occupation) where three or more unrelated tenants share a property (and we are not necessarily talking students here). The type and size of HMOs varies with some offering single rooms with shared kitchen and bathroom facilities whereas others offer individual ‘flatlets’ with a bedroom, kitchenette and shower room. There are a number of HMOs being advertised in Peterborough claiming to offer yields of between 10-13%, however, this is a specialist area of the market and the upfront investment is higher and also the ongoing management is more intensive, so do get good advice if tempted by these returns.
Aside from Peterborough’s respectable current performance, its future prospects also look promising. A superfast fibre optic broadband service is currently being rolled out in the city and surrounding villages providing up to 100Mb of data. Rumour also, has it that faster train services in the next few years will result in the commute times into Kings Cross reducing from the current 48 to 37 minutes. If this transpires then that would seriously, improve Peterborough’s appeal and posting impact house prices.
If you are interested in exploring the investment property market in Peterborough and would like to beat the Chancellor’s hike in Stamp Duty, please feel free to email or have a commitment free call with me any time to discuss market conditions and options.