Ian Preston's Property Market update for May 2017
Ian discusses two things in our May market update: the residential sales market and how to assess a property if you’re thinking about investing.
First of all, we’ve never seen the sales market stronger than in the last two months. Preston Baker had its strongest ever selling month in March and 49% of our current stock on Right Move are advertised as sold.
It’s a really, really good time to be selling and buyers don’t have as much choice at the moment because as quickly as property is coming onto the market, it’s selling - although we did see a 7% increase in available stock in the last month. So it's definitely a great time to sell your property, being underpinned by super low interest rates.
At the moment, if you’re wanting to take a mortgage with a 25% deposit, our mortgage advisor here in the York office, Ian, tells us that HSBC are currently offering a 1.19% interest rate, which is just incredible. So if you are thinking about buying, it’s definitely worth considering.
How to assess a property if you’re thinking about investing
*demonstration on the video*
We’re going to look at the buy-to-let section of the site. Once you’ve clicked on it, you can scroll down to see our top opportunities, select the amount you want to invest and specify which location you prefer.
We’ll take a look at Armitage Road in Doncaster, which is advertising a gross yield of 10.15%. So, if you click on the property and scroll down, you’ll come to a section called ‘buy-to-let’. This allows you to get a detailed return on investment calculation.
There are two numbers: gross yield (the amount of rent you get in divided by the price you pay for the property) and annual ROI (this adds in what happens if the property value increases over a period of time - in this case, 10 years).
You can go in and adjust things such as the amount of initial investment, the cost of purchase, the rate of which you think house prices will grow so that calculations can be tailored fully in line with the assumptions that you are happy with.
Once you’ve done all of that, you can email the calculations to yourself so that you can compare multiple properties on the Preston Baker database.
Looking at a property not on our database? No problem, head over to the standalone buy-to-let ROI calculator to input any purchase price and rental amount to work out the return on investment for you in exactly the same way.
Need more detailed information?
We’ve found that a number of customers have benefitted from a full explanation on what the terms mean and what reasonable assumptions you can make. The mortgage advisors, in particular, have all been trained on the system so do book an appointment with your local branch for a one-to-one session along with detailed help on mortgages too.
Ask a question...
If you have any questions you'd like to ask Ian answering concerning the state of the local property market please leave a comment on one of Preston Baker's local Facebook pages, our YouTube channel or email us at firstname.lastname@example.org.
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