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Erdington...the place to invest in a Buy to Let??

01/09/2014

One of the last chunks of census data has finally been released by the Government, and for those of you who enjoy interpreting data, it is a gold mine of information. Data and relevant information is so important when making decisions on what (or not) to buy when investing in property; after all, it is one of the biggest investments you will make in your lifetime!

 

I have spent some time looking at the B23 postcode area, the geographical area from College Road running up to Chester Road, and back down to Gravelly Hill, where it meets the famous Spaghetti Junction.

The census data allows anyone to access data for housing estates or areas, and even better down to individual roads. This golden information allows us to weigh up potential hotspots in the rental market and show landlords and investors where there could be an opportunity.

 

In the Erdington (B23) area, there are just over 22,828 people living in 10,236 properties. It is the home ownership percentages that really grabbed my attention, as it is this information, tied in with our intimate knowledge of the market, where we can match tenant demand to an under supply of rental properties. In the Erdington area, of those 10,236 households, 25.4% own their property without a mortgage (measurable with the 25.9% Birmingham average) and an additional 31.6% households own their property with a mortgage (again the Birmingham average is only slightly lower at 29.3% and that includes all the posh areas!).

 

Normally, when you have high percentages of home ownership in an area, the percentage of private rented properties tends to be significantly lower. However, according to the census data, in Erdington 19% - in other words 1,945 properties, are private rented (slightly higher than the Birmingham average percentage of 18%).

However, with the recent economic downturn, a significant amount of homeowners have now become first time landlords by making the decision to rent their own properties and find alternate accommodation. Based on this, I would confidently suggest that a significant proportion of the 25.4% of owned properties may also be operating as rented properties too. These figures may have just slipped through the net when the census data was being collected!

 


With such excellent demand from homeowners and tenants, this could be the right area to purchase your next buy to let investment, especially as some of the one bed flats are achieving yields in the 7% to 10% region and Erdington values always perform well over the long term.

 

Therefore, if you are considering buying a property for investment in the near future, I am always happy to give you my considered opinion on which property to buy (or maybe not to buy) to achieve what you want from your investment. If you are a landlord, new or old, we are certainly more than happy for you to pop in and see us at our office on Kingstanding Road for a chat or email me direct on melissa@amitylettings.co.uk

 

Chow for now!

 

Melissa



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