Property In Norfolk Is Still a Good Investment
- Landlords
For letting a house to be a profitable enterprise for a landlord, more money has to be coming in from rent than is being spent on the mortgage and maintenance of the property. And any sudden devaluation in the property market can throw these calculations out. With tax incentives removed and higher purchasing costs such as the recent stamp duty increase, is it still a good time to invest in property? We believe, in Norfolk at least, that it is.
Rental Demand
Properties do not stay empty for long. And an attractively maintained property at a fair price will be let continuously. Landlords in Norfolk need not fret that their house will stand empty accruing costs with no income.
Rental Incomes
As a result of this increased demand, rents have been steadily increasing in Norfolk and Norwich year-on-year. With the trend likely to continue as more people want to live here than there is accommodation to house them. A set of circumstances that will always put an upward pressure on prices.
Asset Value Inflation
The same demand for housing in Norfolk has led to an increase in house prices. Norfolk is following the national trend here. Which can be seen in these average house price figures published in The Times in September:
- Year to December 2019 – 2.2% rise, av £235,000
- Year to December 2020 – 8.5% rise, av £252,000
- Year to June 2021 – 13.1% rise, av £265,000
A Good Time to Invest
As an investment, property is a longer term commitment. A buy-to-let mortgage will likely require a 25% deposit. And there are all the usual fees of house purchasing to take into account. But, if you have the capital, the property market is still a good place to invest, with rental income providing a regular allowance and your nest egg inflating as property prices increase in line with demand.
Hassle-Free Property Management
We can take all the hassle out of property management and maintenance. We can also advise landlords on the type of property to purchase, the best locations that attract higher rents, and we can attend viewings on your behalf if you are not local.
Call Pearl Lettings on 01603 980770 or email hello@pearllettings.co.uk and a member of our team will get back to you.
