Effectively when considering property investment it is worth noting that before even calculating net yields, gross yields, ROI’s etc one needs to be cognizant of ‘the fundamentals.’
What I mean by fundamentals are things such as:
– Does the area have good transport links?
– Are there local amenities such as shops, supermarkets and schools etc?
– Are there activities for families and parties from all socio-economic backgrounds to do?
– Are there jobs in the area or within a reasonable commutable vicinity?
Any of the above lacking may reduce the demand for people to live in that area which could have dire consequences for landlords in terms of low rental yields and long unnecessary void periods. Here are five reasons already why Selby is a good area to invest in property.
Selby summit – With the introduction of Selby’s answer to Castleford’s Xscape, this will naturally create an area where people congregate hence improving Selby’s economic profile. There will also be a supply of new jobs not available before, creating new opportunities for Selby’s residents.
Furthermore, organisations are likely to have done their homework when deciding on where to build the indoor adventure arena. There would have to be an incredible amount of research to be done to deduce where the most profitable area would be. In this instance investors are likely to be ‘piggy backing’ off the extensive market research of enterprises.
Close proximity of York & Leeds – Within a half an hour train ride of York & Leeds, Selby provides commuters with an excellent incentive to live in the area should they wish to live in a more rural part of Yorkshire whilst working and/or appreciating the urban landscape of York/Leeds etc.
Great transport links – In order to find a good property investment, a landlord should bear in mind the mentality of his/her tenants and their ability to ‘get around’. Selby is around 25 minutes drive from York city centre and boasts great train and bus services to multiple areas of Yorkshire as well as a direct train line to London Kings Cross with only a 2 hour commute. As such there is a massive incentive for people to live in Selby and consequently, a fantastic place to invest in property.
Residential construction developments in the area – A good indicator of growth and infrastructure in an area is if developments are popping up. The reason for this is, similar to the Summit indoor adventure park, businesses will be doing their research to assess the most profitable areas to invest and the level of infrastructure an area has to offer. Two areas that spring to mind in Selby and surrounding areas is Staynor Hall off Hornbeam Close and the new houses at Ceretic Park in Sherburn-In-Elmet.
1st April 2016 – From this date the stamp duty for buy-to-let landlords shot up 3%. This hike is likely to have adversely impacted property investment in areas where property prices are high, incentivising landlords to invest in areas where prices aren’t so significant. To put this in perspective, a 3 bed semi-detached property in Selby costs circa £150,000 whereas the same criteria in Woking in Surrey costs circa £400,000. Before even considering the rental yield, ROI etc, the stamp duty outlay for the Selby property is £5,000 whereas for the Woking property, a whopping £26,500.
With the above figures, the likelihood is a lot of landlords previously thinking of investing in areas such as Woking will now consider areas such as Selby more seriously. This will inevitably mean greater capital growth in years to come as interest and demand for Selby properties rises.
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