You see, property values didn’t stop dropping in Walsall until January 2013, so after a strong run over the last 20 months, the ever upward drive of house price rises has started to turn with increases now at an almost standstill for the first time since the start of 2013. Now it could be said this easing of the housing market in Walsall can be attributed partly to the time of year (last year property values in Walsall dropped by 0.8% in November but recovered by 0.9% in December), it is obvious that estate agents in Walsall are wary about the direction of the market as a result of the not as strong demand and fewer house sales.
With the uncertainty of a possible interest rate rise, new mortgage rules, a general election on the horizon and recent warnings of a house price bubble. Although the main indicators suggest that buyers will start to gain the upper hand, especially with the new stamp duty rules announced recently by George Osborne. However, there are many homeowners who don’t need to sell and won’t bother unless it’s economically beneficial to do so, but most homeowners are homebuyers, so what they lose with one they gain with another.
On the one hand going for high yielding Walsall property to rent out seems an obvious choice, but high yielding property often doesn’t go up in value that well and in some circumstances doesn’t keep up with inflation, meaning in real terms you have a depreciating asset. So surely you should pick a property that has great capital growth then, because of the obvious potential to generate long term capital profit, especially with inflation eating away at our savings. However, rental yields on high capital growth properties (in areas such as Brownhills, Aldridge and Parkhall) tend to be low meaning if you are taking a high percentage mortgage, the rent doesn’t pay the mortgage payments.
That is why in the New Year, due to the demand, we will be running a number of informal Landlord Workshops for new and existing Walsall landlords, irrespective of whether you are a self managing landlord (ie you do it all yourself), landlords with other agents, people who are thinking of becoming a new buy to let landlord in Walsall for the first time in 2015/16 and finally our landlords that already let us manage their properties.
If you would like to discuss the above or just hear the sound of my voice please do not hesitate to pick up the phone and call me direct. Alternatively you can email me direct at the following address:
Phone: 0345 257 9850