Knowing how saleable a property 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 Mauricewood popped into our offices 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 of the 6,627 households in Penicuik there
are 51 properties on the market for sale. Of those 51 properties, 29 properties
are fully available on the open market waiting for a buyer and 23 have buyers
and are sold subject to contract. That means 44% of property on the market has
a buyer in Penicuik (interestingly in Dalkeith 41% of properties on the market
have a buyer and in Edinburgh 51%).
Analysis
by type of property
However, delve deeper, and in Penicuik today, 43% of semi-detached
houses on the market have a buyer and great news for flat property owners, as 47%
of them have buyers. Terraced houses fair
even better, with 6 of the 8 on the market now having buyers (making a wapping
75%). The properties that appear to be sticking though are detached at a
comparatively lower 27%.
Analysis
by number of bedrooms
Doing a similar analysis but this time by number of
bedroom is even more interesting. 20% of
one bed properties on the market already have a buyer and this rises to 45% for
two bed properties. Fascinating though
are the three bed properties where 76% of these sort of properties that are on
the market have a buyer! However, life
is not so good for 4+ bed properties as none of these properties have a buyer
yet.
Taking the above together suggests that, at the moment, 3
bed terraced houses look like the way to go.
We are always giving advice to our existing and new
landlords in Penicuik on what to buy (or not as the case may be). Having this detail of information at our
finger tips, allows us to spot trends in the local market, which then enables
us to give the very best advice to our clients. We don't charge for that advice
as we have plenty of opportunity to earn money by finding the best tenants for
our landlords in the years to come on the investments we have advised on. If you want some advice, come and see me in my
offices (6 Bank Street, Penicuik) or email me (news@thekeyplace.co.uk).
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