Knowing how saleable a property is, is half the battle when deciding what (or not) to buy for your next property investment. Why? Well because one day, you may need to sell that property. If you go into the purchase with open eyes, you know most of the risks and can barter the price accordingly if you have to.
Bearing this in mind, last week, a couple from Brownhills contacted me to ask about investing in property. Their concern was if we have another property slump (and we will because that is what has happened to the British property market ever since the 1950’s), if they did need to sell, what type of property would be easier to sell. Now, everything sells, even during a slump, but I did some research and followed up their query – I was actually quite surprised with the results.
A good guide to judge the saleability of property is the number of properties for sale, compared to the numbers that are sold, subject to contract. Now I carried out this comparison last week, so the numbers will be marginally different today, but in Walsall, there are 579 properties on the market for sale. Of the 260 houses still available for sale without a buyer in Walsall, 113 are terraced, 86 are semi-detached, 58 are detached and only 3 Bungalows.
However, delve deeper, and in Walsall today, 42.1% of detached houses on the market have a buyer and great news for semi owners, as 48.1% of them have buyers. Terraced houses fair a little worse, with only 37.8% with a confirmed buyer. The properties that appear to be sticking though are apartments – only 29 of 99 on the market have buyers, a very low 29.3%. Leaving the best to last, its bungalows that surprised me, none of them have a sale agreed although one has been on the market since March 2016!!
I am always giving advice to my existing and new landlords in Walsall on what to buy (or not as the case may be). You see, I have always thought the right property in the right location could make a great buy to let investment? What works in one area does not necessarily create a buzz in another.
Having this detail of information at my finger tips, allows me to spot trends in the local market, which then enables to me to give the very best advice to my clients. I don’t charge for that advice as I have plenty of opportunity to earn money by finding the best tenants for my landlords in the years to come on the investments I have advised on.
Final thought though, before I go, if you would like to find out the comparative figures for Birmingham against Walsall (which I guarantee will surprise you!!), call in or send me an email.