As I mentioned in one of my blogs last week, I was having
a cup of tea at Tea Jennys in Falkirk last week with a landlord. This landlord already has a couple of
residential properties as well as a commercial unit that are doing very well
for him and is on the look out for a third residential property. When we were talking, he asked me a question
that made complete sense in terms of commercial property but was as bit ‘left
field’ from a residential property point of view – how much he should be paying
per square foot?
Well, that was a challenge and you know how I like a
challenge!
So I did my research and found out that:
- The average flat in Falkirk is currently selling for approximately £142 per square foot costing, on average, £84,306.
- Terraced houses in the town are currently selling for, on average, £97,368 or £126 per square foot.
- An average semi in Falkirk is obtaining for £132,138 and achieving £160 per square foot.
- Finally, the average detached house in Falkirk is achieving £146 per square foot and is selling for £229,765 although this selling price is skewed by a small number of high value properties that do not make viable buy to let properties.
Now these are of course averages, but it gives you a good
place to start from.
If you recall in an earlier article, my research reveals
that Falkirk terraced houses tend to generate a better yield than detached and semi-detached
houses (probably because they are cheaper to buy than semi-detached houses but
rents as fairly similar) and flats (probably because there are not that many
flats for rent in Falkirk). However, detached houses, semi-detached houses and
flats tend to appreciate in value more rapidly and may well be easier to sell –
remember 22.0% of properties in Falkirk are terraced houses compared to a
national average of 18.6%.
So, terraced houses are the cheapest to buy per sq ft and
give the highest rental yield but give the lowest capital growth. That’s interesting.
If you would like to explore how we can help you with
your property investments, or should you require any advice about investing in
the Falkirk property market, wish to enquire about our Investment Analysis
Reports, Property Sourcing, Residential Lettings or Property Management
services, please do not hesitate to visit the Falkirk property Blog (www.thefalkirkpropertyblog.co.uk),
contact me for a chat (phone me on 01324 469480),
come and see me in our offices (6 Vicar Street, Falkirk) or email me (falkirk@thekeyplace.co.uk).
A few more interesting articles about the
Falkirk Property Market:
- Win win for Falkirk landlords – capital growth AND rental yields are higher than in Linlithgow and Edinburgh! http://bit.ly/1VZaON2
- 26% of Falkirk Tenants’ Salary goes on Rent http://bit.ly/25LoBwJ
- Falkirk’s ‘Generation Rent’ to grow by 32% by 2021 http://bit.ly/1spHi7q
- Why should you consider buying to let in Falkirk? http://bit.ly/1W1NNcY
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