Knowing how saleable a property is is half the battle when deciding what (or what 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 Trinity 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 of the 215,822 households in Edinburgh there are 2,575 properties on the market for sale. Of those 2,575 properties, 1,013 properties are fully available on the open market waiting for a buyer and 1,562 have buyers and are sold subject to contract. That means 61% of property on the market has a buyer in Edinburgh.
Analysis by type of property
However, delve deeper, and in Edinburgh today, 62% of flats on the market have a buyer and great news for semi-detached property owners, as 64% of them have buyers. The properties that appear to be selling less well though are terraced and detached houses at a comparatively lower 56% and 55% respectively.
Analysis by number of bedrooms
Doing a similar analysis but this time by number of bedroom is even more interesting. A whapping 65% of one bed properties on the market already have a buyer. Not far behind are two and three bed properties where 61% and 60% respectively have a buyer. However, life is not so good for 4+ bed properties as ‘only’ 53% of these properties have a buyer yet.
Taking the above together suggests that, at the moment, 1 bed flats or possibly 2/3 bed semi-detached houses look like the way to go.
We are always giving advice to our existing and new landlords in Edinburgh on what to buy (or not as the case may be). Having this detail of information at our finger tips, allows us to spot trends in the local market, which then enables us to give the very best advice to our clients. We don't charge for that advice as we have plenty of opportunity to earn money by finding the best tenants for our landlords in the years to come on the investments we have advised on. If you want some advice, call me on 0131 603 4570 or email me (firstname.lastname@example.org).