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  • Property-a-holics

    Birmingham city centre overpriced?

    Birmingham city centre property seems a sure-fire bet to me (at the right price). Gross yields at the moment seem around 5-6% depending, lower-end for more premium property units from what I can see. That said, over the long-term, growth seems inevitable... Rents for normal one beds seem between 650-750 and two beds around 900-1000 - quite healthy.

    There is a large difference between prices in the secondary market vs the various new-builds, but yields even on some new-builds look acceptable.

    Various city-wide regeneration schemes (Smithfield, HS2 and around Curzon, SnowHill), overall strong population growth... There are various reasons for prices to up in the long-term irrespective of Brexit.

    Overall, I'm keen - wondering what others think?

    Cheers

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    Hi Sam,

    Birmingham is definitely a great place to invest! I’d agree with you - it seems like the prices will continue to rise there. The surrounding areas may be influenced by this too as more people move to be closer to Birmingham.

    New builds will tend to have higher prices (and therefore lower yields) than the secondary market, as they are always put on at a higher price for being brand new.

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    Transparency notice: OneandOnlyPro is a commercial partner of Property Tribes.

    City Centre flats?

    2006 just called,  it wants it's story back......

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    That's my niggling concern!

    Tell me if I'm wrong though, differences this time:

    - HS2 train link

    - Tram extensions

    - Smithfield regeneration

    - Digbeth coming up

    - migration of more people for better lifestyle vs London

    - high commercial property demand

    - Overall gov Northern Powerhouse


    Also, the next crisis will not be a credit crisis given all the regulations and protections in place, so property market unlikely to be so drastically affected and any drop will be gradual.

    I see prices as higher, but the overall environment very different to 2006/7/8. Mortgage lending still very sensible and affordability requirements for rent coverage as opposed to just LTV.

    I see it as different. Doesn't mean I'm right - what do you reckon?

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    Definitely some good fundamentals in Birmingham you've listed there.

    My fear for the next crash - the only certainty is that there will definitely be one - is that in 2008, interest rates dropped to a record low saving a lot of people's backsides, will that be the same next time - not sure.

    I think the cracks were papered over last time and we're sat on a ticking time bomb of sovereign debt, consumer debt, over leveraged landlords, outrageous peer to peer/Crowdfunding and sub prime lending securitisation has simply switched from houses to car finance.

    Also last time we didn't have a very real prospect of Marxists coming to power (Corbyn).

    That said, I do get grumpy on a Monday so am being exceedingly negative today!!!

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