I’ve spoken to a few of Falkirk’s landlords over the past
few weeks who feel the property market may be about to flatten out, having seen
sensational gains over the past few decades.
On the other hand there are others I’ve met who are new to buy-to-let and comparing what else they can do with their money today, rather than seeing property as expensive now compared to the past.
And as I’ve said many times, property still remains one of the best places you can put your money based on the facts as we know them today. Those facts being that yields in Falkirk are around 6-7% on average, which is significantly higher than the sub 1% available from savings accounts. It’s also higher than the average yield from the FTSE 100 (3.75%) and the average rate of mortgage finance.
It’s easy to fall into the trap, as I have done in the past, of thinking “well I’m not paying £120,000 for that two bed house when next door sold for just £100,000 three years ago”. We have to remember it’s not three years ago however and base our decisions on the opportunities available now.
I do still find myself reflecting on “what might have been” though. Most recently a flat on Stirling Road, Falkirk sold for £64,800 - five times the £12,800 it cost 12 years ago back in February 2005.
There’s still some who are making gains from short-term property transactions although I am not a great fan of ‘doer-uppers’ (ie people who buy, do up and sell shortly thereafter) as this leaves you exposed to the short term vagaries of the property market.
Nonetheless, some shrewd buyer on Thornhill Road, Falkirk has made short-term gains at the beginning of this year. Having paid £45,750 for a house October 2015 they re-sold it for £53,000 in March 2017.
On the other hand there are others I’ve met who are new to buy-to-let and comparing what else they can do with their money today, rather than seeing property as expensive now compared to the past.
And as I’ve said many times, property still remains one of the best places you can put your money based on the facts as we know them today. Those facts being that yields in Falkirk are around 6-7% on average, which is significantly higher than the sub 1% available from savings accounts. It’s also higher than the average yield from the FTSE 100 (3.75%) and the average rate of mortgage finance.
It’s easy to fall into the trap, as I have done in the past, of thinking “well I’m not paying £120,000 for that two bed house when next door sold for just £100,000 three years ago”. We have to remember it’s not three years ago however and base our decisions on the opportunities available now.
I do still find myself reflecting on “what might have been” though. Most recently a flat on Stirling Road, Falkirk sold for £64,800 - five times the £12,800 it cost 12 years ago back in February 2005.
There’s still some who are making gains from short-term property transactions although I am not a great fan of ‘doer-uppers’ (ie people who buy, do up and sell shortly thereafter) as this leaves you exposed to the short term vagaries of the property market.
Nonetheless, some shrewd buyer on Thornhill Road, Falkirk has made short-term gains at the beginning of this year. Having paid £45,750 for a house October 2015 they re-sold it for £53,000 in March 2017.
Property is not all a one-way bet however, particularly
in the short-term, as one buyer of the house in Ladywell, Falkirk found
out. Having paid £51,000 in May 2012,
they had to settle for £23,000 less when they sold it in March of this year (and
pay all the associated buying & selling costs).
Even the past decade hasn’t been kind to all property buyers either. Whilst the average property in Falkirk has increased by 20% since 2007, in January 2017 a flat in Towers Court changed hands for £45,000 - some £25,000 (36%) less than the previous owners had paid 10 years earlier.
I still think there is value to be found in Falkirk’s property market – you just need to look a little harder and grind down into the fundamentals of a property a little more than you used to although the surprisingly high level of rents that are being achieved at the moment is very helpful.
Even the past decade hasn’t been kind to all property buyers either. Whilst the average property in Falkirk has increased by 20% since 2007, in January 2017 a flat in Towers Court changed hands for £45,000 - some £25,000 (36%) less than the previous owners had paid 10 years earlier.
I still think there is value to be found in Falkirk’s property market – you just need to look a little harder and grind down into the fundamentals of a property a little more than you used to although the surprisingly high level of rents that are being achieved at the moment is very helpful.
As I don’t sell property I’m happy to give some free
impartial advice to would-be investors to help find a property that suits your
requirements. If you’re interested just get in touch (Office 6 Vicar Street,
Falkirk; phone 01324 469840; Email news@thekeyplace.co.uk).
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