As you can imagine I speak to a fair few property investors and landlords each week to discuss the local market, what’s going on, where to buy and what to buy. The answer to these questions is different for everyone but it’s a fairly simple process to find your answer if you know the right questions to ask. Yesterday a friend of mine called me. I didn’t even realise he was in the market to buy, yet he told me he’d been looking for a property for 9 months and just couldn’t find a good buy-to-let property deal in Watford.
I explained to him that you can sometimes get caught up in ‘looking for a good deal’ and as his intention was to buy and hold on a long term basis he should perhaps think about relaxing his criteria – here’s why….
Good-property-deal-in-watford
At the moment it’s very tough to get £10,000 off the asking price of a £300k property. There are both investors and first time buyers fighting over some properties due to the very low levels of stock in the market.
My friend said he had put a lot of offers in but had always got knocked back as another buyer would offer the asking price or more.
If you look at the Watford market as a whole then in the last 3 months there were 173 sales at an average of £344,671. There has been an increase of 2.98% over the last 3 months. If you go back 12 months prices have increased 4.28%.
Had my friend decided to relax his criteria and buy something 3 months ago at his £300k budget it would now be worth £308,940. That’s an increase of £8,940 that he would have experienced. It’s also a return on his investment of £75,000 (his deposit) of 11.92%. That’s in just 3 months! What could that look like in a 1-5 years?
As investors of course we don’t want to pay the asking price! In fact we’d love to buy at a discount but at the moment in a strong market where there is little stock you might be better off paying the asking price to secure an investment or potentially risk missing the boat.
House prices are still moving in the right direction for investors in Watford and it’s my personal belief that prices will continue to increase although at a steadier rate of perhaps 3-5% in the next year.
If you’d like to discuss what you’re trying to achieve then I’d love to talk to you. You can reach me on 01923 375 300 or feel free to email me james@caleyandco.com