A scary yet interesting perspective… However what we are seeing here in Nottingham is something altogether different.
I previously reported on this subject back on the 17th March. However despite all of the concern, what has really changed?
We have actually noticed a considerable increase in BTL investment activity across Nottingham since the start of this 2016.
Professional landlords of whom either do this for a living, or who have a multiple property portfolios are actively buying up property NOW despite the ‘Doom & Gloom’ in the press. So how can this be…?
Well actually it really is quite simple. The latest stamp duty increases have in effect, just provided investors with an easy and additional expense to leverage against a properties asking price.
Statistics sourced within our own portfolio suggests that the average return on investment for properties in Nottingham is between 6-7% – This just taking in to account the annual return on investment (yield) from the rental income.
When you then consider that the market value of properties for sale in Nottingham today, is only really just starting to show signs of a significant recovery. Many people – and for good reason, are seeing this as the start of the next big property up-swing.
If you add this to the fact that we also know that rental prices in Nottingham have already realised a 5-8% growth in yield since the start of this year – The real question is perhaps the same one that is as relevant today as it’s always been.
Is there really any better investment than Brick’s & Mortar?
