Following
on from our recent articles on the right time to invest in the local
property market we had a client come into our office to discuss their
first Buy To Let. Their main concern was is it still a good time to buy
property for rental purposes and is the demand still strong in the local
area.
The
best way to judge this is to look at the affordability of local housing
by simply finding the average property price and comparing to the
average salary, the higher the ratio the less affordable property is and
therefore the more likely that people will rent rather than buy.
To
test this we found that Hoddesdon currently has an average property
value of £302,000 and with the average salary quoted as £35,100 pa. This
is a ratio of 1 to 8.6. Meaning a Mortgage of over 8 x salary and a
deposit of over £15,000 would be required.
With Mortgages being harder
to obtain than in previous times and the amount of high deposits needed to proceed with a property purchase, for many people renting is continuing
to be a very good option and this trend is likely to continue. Therefore it would stand to reason that for those with the means to be able to "Buy To Let" now is a good time.
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I have been in and around the Hertfordshire property market for over 25 years, starting as an estate agent in the county town of Hertford and now running a successful lettings and property management company based in Stanstead Abbotts. I have let and managed property all over Hertfordshire from the area that I currently work to Wheathampstead where I owned and managed a lettings & estate agents to Watford and surrounding areas where my company acted as a marketing agent for one of the largest property management companies in the country”
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