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  • Property Prices

    Snapshot of North East property performance

    I thought I would give an illustration of true figures and the growth rates of property I purchased in 2007 to date.

    I purchased this little batch between 2007 and 2015 up until the time of the Osborne changes, when I stopped buying Investment property.

    My conclusion from my figures is that, even if Osborne had not changed the rule, I don't think I would have purchased again anyway as the yields today and the prices paid today just don't give me the cash flow I need

    3 Bed House - Purchase price 2007 £60000 - value today £120000

    3 Bed House - Purchased price 2008 £75000 - value today £125000

    2 bed flat - purchased price 2007 £49000 - Value today £75000

    3 Bed Flat - Purchased price 2008 £55000 - value today £80000

    The figures are not staggering but for a total investment £239000 the value today is £400000

    This is just a sample of my own record in the NE

    Just out of interest the Rental income from the above is £26280 per year

    So you can make money in the NE If you know what to buy and run as a business

    From what I can see in my market, flats are growing slowly but houses are growing well

    Rents are steady - no growth at present

    I am happy to plod along with good yields, but I am not intending to buy at this point of time more BTL property.

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Where abouts in the NE are these DL? I have property in Heaton which has seen very little growth since the crash.

    Cheers

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    I know HEATON well but it’s not my patch I am in walkerville and Walkergate and parts of walker

    property I bought between 2000 and 2007 has been a poor investment in real terms and are still below the prices they were before the crash flats at the height were 90k now are around 75k so yet to recover

    property I have shown today are post 2007 which I purchased cheap after the crash they have done well but I changed statergy and moved from flats to 3 bed houses

    I won’t buy flats now learned a lesson

    flats are still performing badly but the yields are holding up so I just keep hold of what I have and watch the market

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.


    You have done well, buying when prices were depressed due to the financial crisis around that time. Now with good capital returns you should lock in some gains as these will erode very quickly over the coming months. Those areas outperforming usually get hit badly on the down side.

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    It’s an interesting thing the three bed houses before the crash were 145k

    so they haven’t yet recovered from the crash

    i won’t buy at today’s prices just treading water to see what happens my guess is FTB are holding up prices in N E I don’t think landlords are buying

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    I suppose it very much depends upon the location as you would have thought 3 beds would have done better. Maybe first time buyers were looking at the cheaper flats in relation to house prices at the time.

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    My guess is why buy a flat for 75k when you can have a house for 125k

    its all horses for courses

    your right every area is it’s own market

    but when we have the crash the SE and London will feel a lot of pain

    and it will take a long time to recover this time

    th North dosent have a affordability issue and it FTB which will hold prices in the north but it may stutter or stagnate too

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    Learn Change and Adapt ?????

    All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.

    Thank you for sharing that, great to see your successes in investment. You are right, flats are slowly growing in the market as they are becoming more popular and convenient for modern day life.

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


    In London massive amount of flats are going up. As house prices are far beyond first time buyers they are buying flats. However with these flats come all the extras as portage, fitness centers, landscape gardens- all which has to be paid for ie service charges which many will realize how expensive these are in due course. Also with so many flats around the old conversions are going to have to compete with the new modern flats. So i expect to see conversions come down in price more and be difficult to sell over the coming years.

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    Some really good points there.

    I think it all comes down to the buyer, as tastes are different in terms of wanting to be in a new build flat or a more mature converted house.  Also Service charges do not apply to all flats but this is a valid point.

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