Published on: Monday 01 October 2007 by
Choosing your property
THE area you choose to buy in will depend on whether you want capital appreciation or a steady income and what the demands of your particular market are.
Nobody has a crystal ball and even property experts can get it wrong but there are several key factors in choosing the next up and coming area that most pundits agree on. Opt for property on the edge of popular areas with good transport links and not too far from shop and amenities.
If you don't know an area well, talk to local estate agents and letting agents. Terry Kimmitt, of Interlet Letting Agents, said: "In Sunderland massive redevelopment of riverside and city centre continues. Investors showing keen interest in off-plan purchases, ignoring the previously popular cottages mainly in the Southwick area of the city. Some dereliction has occurred as a result of neglect but if cleared, it presents opportunities for development by well-advised investors.
"East Durham has experienced capital growth of 40pc plus in recent months. Rents however have been restricted due its high level of socially-funded tenants. Whereas rents were high relative to capital values, this is no longer the case.
"Housing benefit payments are to be based on private rents achieved locally in an attempt to control central government costs. Private tenants are willing to pay for higher rents as owner occupation is taken beyond their means.
"West Durham has yet to see the dramatic increases in capital growth and investor interest experienced in the east of the county. Nevertheless, demand is rising for good quality rental property - particularly three bed, with good parking.
"In Bishop Auckland business has been brisk in the south of our region. Investors have been attracted by the availability of reasonably priced property and the yields are better than in the north. Three bedroom properties are in short supply and flats are a rarity.
"Chester-le-Street is a town with excellent road and rail link, making it an ideal location for commuting throughout the region. It is attractive when compared to rents in Durham City, Sunderland and Newcastle and attracts a higher than average proportion of professionals."
John Wilson, of Appletons in Stockton-on-Tees, says capital values are still increasing in his area. He said: "Rentals are also going up but at a lower rate and there is a growing number of properties available for let. If this trend continues, rents will begin to fall as supply of property exceeds demand."
On Teesside, Michael Westgarth-Taylor of Sanderson Taylor Partnership says demand for properties to rent continues to be strong at virtually all levels but particularly so for small/medium sized properties which are fully modernised and conveniently situated for shops and schools.
He added: "A significant proportion of buyers at the lower end of the market are for investment/buy to rent purposes."
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