Friday, 16 October 2015

Sunderland Is One of the Daily Telegraph's Property 'Cold Spots' - What Does This Mean For Sunderland Investors & Landlords?

I was interested to see an article in the Daily Telegraph last week which revealed the UK's "Unlikely Property Hotspots", based on an eMove survey

The research looked at Demand (the number of homes sold in Q3) vs Supply (the number of homes for sale on Rightmove & Zoopla)

Click the link below for the article

http://www.telegraph.co.uk/finance/property/11916135/Britains-unlikely-property-hotspots.html

Given I've recently looked at demand & supply in Sunderland I certainly didn't expect to see Sunderland in the Top 10 "Hot Spots" however I was interested to see Sunderland actually appeared in the 10 poorest performing areas "Cold List"


Should Sunderland Landlords and Investors start to panic?

No, they shouldn't and actually if you will indulge me for a little while, it may not be a bad thing at all!

Clearly property hotspots such as Bexley in South London with demand measured at 77% or Watford with 72% demand are likely to have better capital growth potential given simple economics dictates prices will rise in a market where supply is unable to cope with demand

But savvy Sunderland investors don't buy for capital growth do they?

Switched on Sunderland investors buy for monthly yield and the potential for positive cashflow and a "Cold" market means that there is the potential to capitalise on the lack of buyer interest and pick up properties at a lower price

A stagnant market means sellers who've struggled to sell may be more open to lower offers

You make your money when you buy, not when you sell so whilst you should always buy with your exit strategy in mind (you should consider whether you wish to hold for the long term or if you intend to sell in the short to medium term you should bear the above in mind) a cold market gives the potential for picking up a bargain than in a market where properties are snapped up before the Estate Agent has had a chance to get their For Sale board up!

If you'd like to discuss any aspect of property investment in Sunderland please give me a call on 0191 567 8577 or email neil.whitfield@belvoirlettings.com




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