With the Coronavirus impacting the world economy, and interest rates down to 0.25%, and the stock market down over 20%, and likely to fall further how do you ensure you get a return on your money over the next year in this uncertain time?
As always we would recommend you look for property in areas of low supply and high demand giving a yield of over 5%. The shortage of housing will not change, as there are waiting lists for properties in many parts of the UK.
Even with the huge uncertainty around Coronavirus, this will not impact the huge shortages in accommodation for many, and the massive demand outweighing supply.
In Nottingham there are 8000 people on waiting lists for property – and as soon as developers develop attractively priced new schemes, there are tenants and owners alike waiting to move in.
Zoopla rates Nottingham as their number 1 city for capital growth in 2020 – see link here with expected growth of 6% in 2020. https://advantage.zpg.co.uk/wp-content/uploads/2020/01/Zoopla-UK-Cities-House-Price-Index-Report-December-2019-1.pdf
Many developments are sold out for the rest of this year, but we have an exciting new exclusive development completing at the end of the year.
Nottingham house prices rose by 5.4% last year, which is pretty good – but that is even better if you leveraged your money.
If you put down 25% deposit and borrowed 75%, and the property cost £100,000 and went up in value to £105,400, then the return on your £25,000 would be 4 x 5.4% ie 21.6% return, plus you would get a positive cashflow on the rental income versus the mortgage of potentially £200 per month.
So huge returns and you are in far more control than investing in shares in a company that you know very little about - buying a property that has strong rental demand, and gaining from both rental income monthly, and from capital growth.
The award winning developer we partner with, sells over 100 high yielding properties every year to buy to let investors, Help to Buy buyers, local families and corporate buyers.
If you are interested in buying a similar property in Nottingham – the Zoopla number one choice in the UK – for between £110-140,000, and just putting 10% down, then get in touch as soon as possible, and we shall send latest availability and pricing.
Nottingham is a top location for buying property in.