Knowing how saleable a property is half the battle when deciding what (or not) to buy for your next property investment. Why? Well because one day, you may need to sell that property. If you go into the purchase with open eyes, you know most of the risks and can barter the price accordingly if you have to.
Bearing this in mind, last week, a couple from Portland popped into our offices to ask about investing in property. Their concern was if we have another property slump (and we will because that is what has happened to the British property market ever since the 1950’s), if they did need to sell, what type of property would be easier to sell. Now, everything sells, even during a slump, but I did some research and followed up their query – I was actually quite surprised with the results.
A good guide to judge the saleability of property is the number of properties for sale, compared to the numbers that are sold, subject to contract. Now I carried out this comparison last week, so the numbers will be marginally different today, but in Weymouth in the DT4 postcode, there are 714 properties on the market for sale. Of those, 465 are fully available on the open market waiting for a buyer and 249 have buyers and are sold subject to contract. That means 34.9% of property on the market has a buyer in Weymouth.
However, delve deeper, and in Weymouth today, 42.5% of detached houses on the market have a buyer, great news for semi owners as have 59.3% have buyers. Terraced houses have 40.4% sold, with 62 of the 153 on the market having buyers . The properties that appear to be sticking though are apartments – only 69 of 253 on the market have buyers, a very low 27.5%. Leaving the best to last, and it’s the bungalows that surprised me, over 46.3% of them having a buyer.
I am always giving advice to my existing and new landlords in Weymouth on what to buy (or not as the case may be). You see, I have always thought the right bungalow in the right location could be a different buy to let investment and they always let very well and quickly?
Having this detail of information at my finger tips, allows me to spot trends in the local market, which then enables to me to give the very best advice to my clients. I don't charge for that advice as I have plenty of opportunity to earn money by finding the best tenants for my landlords in the years to come on the investments I have advised on.
Final thought though, before I go, in the Portland DT5 property market, only 33%% of properties on the market have a buyer .. that is over a fifth less than Weymouth!