Investor Buying Guide
PLACES TO INVEST IN THE NORTH EAST
There are several places to invest in property in the North of England, however, it is arguably even better to invest purely in the North East. With the coupling of cheaper properties, high rental demand and good prospects for rising property prices, it’s a great formula for investor success. Here’s our investor buying guide for purchasing property in the region.
PROPERTY VALUES IN THE NORTH EAST
Across the UK, Newcastle Upon Tyne is one of the cheapest major cities for property values according to Hometrack. With the average purchase price in Newcastle being £129,700, this makes investing in a City Centre location more affordable.
The Chronicle local press report shows that although prices are increasing across the region, they are certainly areas with falling prices that enables a larger net yield on your investment. Read the report here.
FREQUENTLY ASKED QUESTIONS
- Mortgage arrangement fee. Expect to pay your lender an arrangement fee. They vary, however £1,000 is typical or 1%. In some cases, this is non-refundable and either payable at outset or added to the loan. Note: this is not applicable for cash buyers.
- Valuation fee. This is the mortgage lenders charge for a valuation to check the property exists and that it also offers sufficient security for the loan. The cost varies according to lender and the purchase price, however a typical cost for this is around £300. Note: this is not applicable for cash buyers.
- Legal fees. Many lenders will have a panel of approved solicitors on their list. Depending on the purchase price, typical solicitor purchase fees are around £1000 – £1250. Note: these fees are inclusive of disbursements and VAT.
- Stamp duty. For any property investment purchase above £40,000 you will pay SDLT of 3% up to a value of £125,000. Above £125,000 you will pay 3% + the standard charge.
- Homebuyers’ surveys. These are another costly aspect to any purchase, with a typical survey costing £400 to £700. The cost is non-refundable at any point but is an important part of fully understanding the structural condition of your potential purchase.
- It is a realistic starting point that any refurb works may cost a few thousand pounds. When sourcing properties on your behalf, we will be sure to inform you of these costs at the outlay.
We do not waste client’s money on surveys that are visible from the outset. For example, there are some simple problems that can be discovered upon us visiting the property. These are issues relating to damp and mold, water stains and leaks, windows and doors needing replaced, electrical distribution boards, the roof, loft space and exterior brickwork.
When investing in any property, you must consider the resale value of a later date. This can be considered your exit strategy if you wish to simply sell up and walk away. You are free to ask us at any time for an updated value of your property, and we are best placed within the market to inform you of areas with stable housing markets.
The shortest answer to this question is Yes. If we have any investors who are actively looking to sell a property, then we will commonly offer the property to another one of our investors. This can help to avoid paying a sourcing fee, as we are already being paid from the seller.
This is an aspect of our job that we are extremely proud of. We negotiate offers for both buyers and sellers on a daily basis and we always look to the get the very best deals for our clients.
GET IN TOUCH
Ask our friendly team about Property Sourcing, Lettings or Management for helpful and experienced advice. Call us on 0191 497 1797, or simply send us a message and let’s get things moving…