581 Properties For Sale in Bexhill … Is this an Issue?

2017 has started with some positive interest in the Bexhill property market.  Taking a snap shot of the Bexhill property market for the first quarter of 2017, the picture suggests some interesting trends when it comes to the number of properties available to buy, their asking prices and what prices properties are actually selling for.

Let us first consider the number of properties for sale, compared to 12 months ago:

So when we add in building plots and other types of properties that don’t fit into the four main categories, that means there are 581 properties for sale today compared with 526 a year ago, a rise of 10%.

Next, Bexhill asking prices, compared to the same as a year ago, are 5% higher.

With that in mind, I wanted to look at what property was actually selling for in Bexhill. Taking my information from the Land Registry, the last available six months property transactions for TN39 show an interesting picture (note the Land Registry data is always a few months behind due to the nature of the house buying process and so November 2016 is latest set of data). The price shown is the average price paid and the number in brackets is the number of properties actually sold.

So what does all this mean for the property owning folk of Bexhill?

Well, with more property on the market than a year ago and asking prices 5% higher, those trying to sell their property need to be mindful that buyers, be they first timers, buy to let landlords or people moving up the Bexhill property ladder, have much more price information about the Bexhill property market at their fingertips than ever before.

Those Bexhill people who are looking to sell their property in 2017, need to be aware of the risks of over pricing their property when initially placing it on the market. Over the last 12 months, I have noticed the approach of a few Bexhill estate agents is to suggest an inflated asking price to encourage the homeowner and secure the property to sell on their books. The down side to this is that when offered to the market for the first time, buyers will realise it is overpriced and wont waste their time asking for a brochure. They won’t even view the property, let alone make an offer. So when the price is reduced a few months later, the property has become market stale and continues to be ignored.

Whilst the Bexhill property-market has an unassailable demand for property – there is one saying that always rings true – as long as the property is being marketed at the right price it will sell.

If you want to know if your Bexhill property is being marketed at the right price, send me a web link and I will give you my honest opinion.

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‘Flipping’ Heck! – Bexhill Property Values Rise by £29.92 a day!

Investing in Bexhill buy to let property is different from investing in the stock market or depositing your hard-earned cash in the Building Society. When you invest your money in the Building Society, this is considered by many as the safe option but the returns you can achieve are awfully low (the best 2-year bond rate from Nationwide is a whopping 0.75% a year!). Another investment is the Stock Market, which can give good returns, but unless you are on the phone every day to your Stockbroker, most people invest in stock market funds, making the investment quite hands off and one always has the feeling of not being in control.

However, with buy to let, things can be more hands on. One of the things many landlords like is the tactile nature of property – the fact that you can touch the bricks and mortar. It is this factor that attracts many of Bexhill’s landlords – they are making their own decisions rather than entrusting them to city whizz kids in Canary Wharf playing roulette with their savings.

I always say investing in property is a long-term game. When you invest in the property market, you can earn from your investment in two ways. When a property increases in value over time, it is known as ‘capital growth’. Capital growth, also known as capital appreciation, has been strong in recent times in Bexhill, but the value of property does go up as well as down just like shares do but the initial purchase price rarely decreases.  Rental income is what the tenant pays you – hopefully this will also grow over time. If you divide the annual rent into the value (or purchase price) of the property, this is your yield, or annual return. So, over the last 5 years, an average Bexhill property has risen by £54,600 (equivalent to £29.92 a day), taking it to a current average value of £280,900. Yields range from 5% a year and can reach double digits’ percentages (although to achieve those sorts of returns, the risks are higher).

However, something I haven’t spoken of before is the more specialist area of flipping property to make money. (flipping – buying a property, carrying out some minor cosmetics and re selling it quickly).  I have seen several investors recently who have made decent returns from this strategy. For example:

 This demonstrates how the Bexhill property market has not only provided very strong returns for the average investor over the last five years but how it has permitted a group of motivated buy to let Bexhill landlords and investors to become particularly wealthy.

As my article mentioned a few weeks ago, more and more Bexhill people may be giving up on owning their own home and are instead accepting long term renting whilst buy to let lending continues to go from strength to strength. If you want to know what (and what would not) make a decent buy to let property in Bexhill, then one place for such information would be the Bexhill Property Blog at www.bexhillpropertyblog.com

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‘Generation Rent (Forever)’ – 2,832 Bexhill Tenants have no intention of ever buying a property to call home

The good old days of the 1970’s and 1980’s eh … with such highlights lowlights as 24% inflation, 17% interest rates, 3 day working week, 13% unemployment, power cuts … those were the days (not)… but at least people could afford to buy their own home. So why aren’t the 20 and 30 something’s buying in the same numbers as they were 30 or 40 years ago?

Many people blame the credit crunch and global recession of 2008, which had an enormous impact on the Bexhill (and UK) housing market. Predominantly, the 20 something first-time buyers who, confronting a problematic mortgage market, the perceived need for big deposits, reduced job security and declining disposable income, discovered it challenging to assemble the monetary means to get on to the Bexhill property ladder.

However, I would say there has been something else at play other than the issue of raising a deposit – having sufficient income and rising property prices in Bexhill. Whilst these are important factors and barriers to home ownership, I also believe there has been a generational change in attitudes towards home ownership in Bexhill (and in fact the rest of the Country).

Continue reading “‘Generation Rent (Forever)’ – 2,832 Bexhill Tenants have no intention of ever buying a property to call home”

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