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One bright spot for Birmingham in 2022 is the upcoming Commonwealth Games, with celebrations beginning in March and carrying on through to the Games in early August.
But what does that mean in terms of the real estate market? Birmingham has already seen exceptional growth over the past few years, with the average house price rising by almost £60,000 over the past decade. This is great news if you’re already on the property ladder, but for those still wanting to buy, forecasts indicate that prices will continue to rise, and part of that boost can be assigned to the effect of hosting the Commonwealth Games.
Investment in infrastructure and development prior to the Games created almost 5,000 new jobs per year in the City, and the economic boost is set to continue, with another 1,000 new positions estimated to be available on an ongoing basis. To fill those roles, you need people. And people need somewhere to live. Smart property investors are snapping up rental properties across the City, in particular in up-and-coming areas, as demand continues to outstrip supply and rents are forecast to rise. Buy-to-let properties are an exciting investment opportunity now and going forward, though there are a few things to consider if you’d like to move into the buy-to-let market:
1.Know Your Place
There are legal requirements involved in becoming a landlord, including keeping the property in a decent state of repair, having correct insurance, and holding the deposit according to current UK regulations. Do your research so you know your rights as a landlord, as well as understanding those of your tenant. Working with an estate agent to manage the property can remove some of this pressure. Speak to us if you’d like more information about how we can help.
2.Buy Smart
Investing in up-and-coming areas is the mark of a smart property investor, and your agent can help you to pinpoint hotspots, as well as make sure you don’t pay over the odds.
3.Watch Your Figure(s)
The idea behind buy-to-let is to make a profit. This seems obvious, but it’s important to do your calculations when investing. Knowing how much rent you can charge for the area will tell you what sort of return you can get on your investment, and whether it’s worth making the purchase. Your agent will be able to advise you.
So, there you have it. Birmingham, as we’ve mentioned previously, is one of the UK’s hottest property markets, with growth forecast to continue. As more people come to our city, whether as part of the Commonwealth Games or any of the other major investment projects, they’ll need somewhere to live. James Laurence Estates can work with you to begin or build your buy-to-let portfolio, so you can take the gold every single time.
