To start with, the best place to look for property bargains is in the North. This is the general area where price corrections following the credit crunch have been overdone and where prices have been dragged down by a greater number of bank repossession properties. This way, there is greater opportunity to buy properties well below market value that contain Instant Equity on day one of purchase. Whilst there can also be bargains found in the South, these areas mainly occur in greater numbers in the North.
In today’s market, the North/South property divide is greater than ever. The line is vaguely drawn by county, with ‘The North’ of England typically above the counties of Gloucestershire, Warwickshire, Leicestershire and Lincolnshire. ‘The South’ consists of these counties and all areas below.
An area in the North with particular interest in terms of figures are the towns and cities either side of the M62 – from Barton upon Humber to Manchester. In these locations properties can still be purchased at 60% of their previous market peak value.
The first point for consideration when investing in today’s property market is value. There is not much point in buying a property as investment if there’s no positive rental cash flow and no built-in equity from day one.
If you want to improve the security of your investment then it is best to buy more properties in lower purchase cost areas that offer high rental yields than fewer properties in higher purchase cost areas that offer low rental yields.
With every property investment, there are factors you must always consider – including employment, crime, rental yields and tenant demand. Also ensure that the area is regenerating, not degenerating.
How do you find the best ‘Below Market Value’ properties? Look to the North and find sellers that want a quick sell. This task can be quite tricky so leave that task to property professionals who can provide the best possible property deals for you.
It is also worth noting that, prior to the credit crunch, property price percentage increase in the North from 2000 to 2007 was much higher than in the South and Greater London. The North has also been slower than the South to recover from the house price downturn; due to low buyer confidence, larger deposits needed and a greater number of bank repossession properties. As the South – especially Greater London prices climb monumental heights it makes better sense to look north.
Right now, the North of England offers plenty of opportunity for property investment. If you want greater capital appreciation, head to the North, North-West, Midlands and Yorkshire and Humber areas for mid-term to long-term investments.
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