Is Wolverhampton Property A Good Investment?
Estimated reading time 4 minutes
Buying property as an investment comes with a different set of considerations to buying a family home. You’re not necessarily thinking about what you would like in a home — perhaps to be close to friends and family, or in a catchment area for the school you want your children to go to — but about what other people might like.
Maybe you’re thinking about buying a house in Wolverhampton to live in for now, with an eye on selling it when your kids move out; maybe you’re planning to become a buy-to-let landlord here. Either way, you’re going to be considering a potential return on investment more closely than you might if you were looking for your forever home.
What makes property a good investment?
Property has generally been considered a safe investment, because house prices in the UK have generally been going up over time. There have been a few periods recently where house prices have briefly fallen, but the overall trend is still upwards. That means any property you buy now is likely to increase in value over the years or decades to come.
With plenty of demand for rental properties across the UK, it should also be fairly easy to rent out your investment property.
Are there pitfalls to buying investment properties?
Whether property is going to be a good investment for you personally depends on your circumstances — and your expectations.
For example, the property market can be unpredictable. If you’re buying property in hopes of selling it again soon, you can’t guarantee a profit. Changes in the law recently have also affected buy-to-let landlords. For example, landlords can no longer deduct the interest they pay on their mortgages before paying tax, which reduces the amount of tax relief available on buy-to-let properties.
When you come to sell your rental property, you’ll need to pay Capital Gains Tax on the profit you make, which is also something to bear in mind. Also, being a landlord comes with its own set of responsibilities and costs — it’s not as simple as finding a tenant and letting the money roll in!
Is Wolverhampton a good place to invest?
Exciting things are afoot in Wolverhampton at the moment, with several ambitious regeneration schemes looking to create new retail, leisure, and residential areas in and around the city. That kind of investment is a sign of a city that’s on the up-and-up, which could bode well for property prices in future.
Looking back at the last year shows that property in Wolverhampton is already rising in value. The average house price in Wolverhampton is £212,000, which is up by 6.8% compared with last year. If that trend continues, then buying property here could prove to be a wise investment.
What kind of rental income could I make in Wolverhampton?
The news is even better for anyone looking to rent out their Wolverhampton property. On average, houses here let for £1,017 per month, while flats let for £703. Those figures have also risen since this time last year — rising by 7.4%, rental prices have risen even faster than property prices.
It’s worth noting that rental incomes in Wolverhampton are lower than across Great Britain as a whole, where the average rental price is £1,279. Since property is cheaper in Wolverhampton than the UK average, though, you could still see a healthy return on your investment.
Need to sell a property?
If you’re thinking of selling a tenanted property in order to invest in property in Wolverhampton, you should talk to us first. We buy any house, in any condition, even if it already has tenants in situ. You won’t need to worry about how long they have left on their lease, because we’ll take over all contracts when we complete the sale.
We move fast, too. Once you give us the basic info about your property, our experts will put together an initial offer for you. If you’re happy, we’ll take it from there. We can make selling property stress-free for you — and we can complete incredibly quickly. Why not get in touch today?
