Category Archives for "Birmingham Property Investment"

Birmingham Property

How can you profit from property investment in Birmingham?

4 steps to take advantage of Birmingham’s potential

Birmingham is a city with huge appeal to its residents. It offers some amazing shopping, great restaurants and bars, and a fantastic nightlife. It’s a city with a rapidly growing and young population, and five universities supporting the education of 65,000 students. With a diverse and growing economy, home to many national and international businesses, and boasting one of the fastest rates of new business start-ups in the UK, the number and quality of jobs available here is encouraging many more people to make Birmingham their home. In 2017, more people migrated out of London to Birmingham than to any other UK city.

A city is a place where savvy investors are buying property, with regeneration pumping Birmingham property prices. If you are considering investing in property in Birmingham, we think you are about to make a good decision. But how good that decision will be depends on investing wisely. These four steps will help you take advantage of the very real potential for property investment in Birmingham.

1.    Do your research to pick the best location

Most locations in Birmingham are in high demand. However, we think four city centre locations are standout areas. These locations allow investors to take advantage of the growth in the population of young professionals who want to live on the doorstep of all Birmingham’s fantastic amenities. They are:

  • Digbeth, a trendy location with great transport connections and some exciting regeneration going on. Here you’ll find an eclectic mix of bars, bistros and cafés. Young professionals are attracted by the modern contemporary apartment-style living being developed here.
  • Southgate & Highgate is home to the Chinese Quarter and Birmingham Gay Village. It’s a vibrant and diverse area of the city undergoing massive redevelopment of its wholesale market. Here, vacant land and derelict buildings are being transformed with open spaces and a fantastic residential offering which is ideal for young professionals and families.
  • The Jewellery Quarter is a well-connected and vibrant place to live, work and play. It is packed with character as a result of its more than 200 listed buildings, and could be described as the cultural heart of Birmingham; here is where you will find museums and galleries as well as some amazing eating and drinking options. Only a few minutes’ walk from the best of Birmingham, the Jewellery Quarter is uber trendy and offers younger residents a relaxed or lively nightlife, whichever the preference. Property investors here benefit from a good rental yield and affordable entry level.
  • Westwood and Ladywood is an area supporting more than 200,000 jobs. 130,000 people live here. This really is one of the most popular areas of Birmingham. It is where you will find The Cube and Brindleyplace, and the International Convention Centre. There is huge potential here, with more regeneration to come.

2.    Run your numbers

Always project your cash flow before investing in property. Take a deeper look at the locations in Birmingham in which you are considering an investment, and do your research to find out actual rents that are being achieved in the location. Speak to letting agents and ask about average void periods and length of tenancy. If all the numbers stack up, then move to the next step.

3.    Consider future value

Like most other cities in the UK, Birmingham is short of property. Demand for homes outstrips supply, and unless and until this equation balances out, the pressure on prices will be up. Another consideration is that when High-Speed Rail services start operating, London will be less than 50 minutes away. Birmingham may become a commuter town!

Hometrack has forecast that property prices in Birmingham are likely to rise between 20% and 30% in the next three years. That’s some real growth potential.

4.    Should you buy off-plan property in Birmingham?

When you buy off-plan property, you should be able to negotiate a discount to the current market price (we do this for our investors, and because we negotiate in bulk, we tend to get the best discounts). You’ll be able to pay down a lower initial deposit, and stage payments as the build progress. By the time the property is completed in, let’s say, two or three years, you could be sitting on a property that is worth 20% to 30% more than you paid (perhaps even more) if Hometrack’s assessment and forecast prove to be correct.

How do you buy off-plan property in Birmingham?

If you have never invested in off-plan property previously, it can be a daunting prospect. We’ve helped hundreds of beginner investors take those first steps, ensuring that they pass the sleep test – which says don’t do anything that makes you sleep poorly.

If you’re considering investing in off-plan property in Birmingham but aren’t sure if it’s for you, download your free copy of our eBook ‘Profiting from Off-Plan Apartments’. This is the definitive guide for property investors buying off-plan apartments and will help you to maximise your profits while minimising risks.

Otherwise, to find out more and receive an in-depth appraisal of the best property investment opportunities in Birmingham, get in touch with Gladfish today.

Live with passion

Brett Alegre-Wood

Birmingham Property Investment

Why Brexit doesn’t matter for property investors in Birmingham

Forget Brexit, follow the fundamentals

I know you’re probably all fed up of Brexit by now (I know I am), but I have to say that one thing that I’ve found so ridiculous about the whole conversation around the subject is the forecasts of doom when (or should that be if?) Brexit finally does happen: These forecasts have been taken as fact; The economy WILL drop by X billion pounds; X number of jobs WILL disappear; House prices WILL fall by X percent.

No matter which side of the Brexit fence you sit, unless you have a crystal ball there is no way to say what WILL happen in the future. It is all conjecture, supposition, and guesswork. But, let’s say you do believe that Brexit isn’t going to do the UK any good in the short to medium term. Do you want to sit on your cash as it loses value? No, of course you don’t. Doing so is going to damage your future.

What you need is a Brexit-proof investment. With the demand for properties still growing and forecast to do so irrespective of Brexit (this is one thing one which both Brexiteers and Remainers do agree), investment in UK property is the asset that is likely to give you upside whatever happens.

The only question to answer is, where are the best places to invest in property UK?

Brexit-proofing your property investment

Brexit-proofing your property investment is really no different to choosing the best location to invest in other more certain times. You want to buy property in an area with the strongest property fundamentals: shops, schools, transport links, major employers and major investment.

If the location also benefits from a growing and young population, this will help grow and sustain the demand for rental properties into the future. And growing demand is good for rental prices and property values.

So, let’s make a list of these fundamentals:

  • Good retail and leisure amenities
  • Great education facilities
  • Good transport connections to the rest of the UK
  • Plenty of jobs, in an area that does not rely on a single industry or employer
  • Plenty of investment and regeneration
  • A young, well educated population that is growing

This spells Birmingham. Here are a few of these fundamentals and how they add up in the UK’s second city.

A growing and young population

The population of Birmingham is forecast for growth of around 15% by 2041, to more than 1.3 million. Its five universities attract tens of thousands of new students, and many of these stay on in the city after graduating. This gives employers a pool of more than 60,000 highly educated young professionals to fill vacancies.

These young professionals want to live in or near the city centre, where they are close to work and nightlife entertainment.

Birmingham’s economy is growing rapidly

Birmingham has one of the fastest-growing local economies in the UK. It is diverse, future-proofed, and attracting large numbers of start-ups. It is home to a large innovation hub, a very big financial and professional services sector, and supports a range of businesses in food manufacturing, digital and creatives, renewable energies, and advanced manufacturing.

The city has attracted enormous investment from overseas. Many major organisations have selected the city as the place for their UK and European headquarters – including Lloyds, Deutsche Bank and HSBC. Small business growth is something else in Birmingham, too, with the number of businesses growing by a whopping 13% in the last year alone.

Birmingham property prices are expected to continue to grow

The average property price in Birmingham is almost 30% higher than it was five years ago. Urban regeneration has helped to push prices higher, while also helping to make Birmingham a more attractive place to live.

Birmingham’s Big City Plan is hugely ambitious, and will see great swathes of the city further developed. Investment is pouring into projects in the Southside, Highgate, Ladywood, Westside, and the Jewellery Quarter. Along with this investment, it is forecast that tens of thousands of new jobs will be created to support the rapidly growing population. Of course, all these new people will need to live somewhere, and the regeneration plans to deliver city living of the highest standards to meet demand.

Hometrack expects property prices in Birmingham to rise by between 20% and 30% in the next three years. As reported in BirminghamLive, Insight Director at Hometrack, Richard Donnell, said:

We expect to see average house prices rise by 20% to 30% in cities like Edinburgh, Birmingham and Manchester in the next three to four years. The income to buy a home in regional cities is well below the London average so in the near term we expect to see rising house prices stimulating additional buying and market activity in those areas. House prices have some way to increase before there is a material constraint on demand.

In summary

Forget Brexit. Look for locations that have great property fundamentals underpinning people’s desire to live there. Look for population growth, supported by a forward-looking local authority that is encouraging inward investment. Look for regeneration and development, and a thriving and diverse local economy. Where will you find all of this? In a word: Birmingham.

To find out more and receive an in-depth appraisal of the best property investment opportunities in Birmingham, get in touch with Gladfish today.

Live with passion

Brett Alegre-Wood

Birmingham Property Investment

6 Reasons you should buy investment property in Birmingham

A thriving economy, young population, and lack of supply, plus more

Birmingham is a firm favourite with property investors, and our research confirms it is one of the best places to invest in property UK. It benefits from fantastic and improving infrastructure (including High-Speed Rail on its way), demand for homes that is outstripping supply, and according to PwC and Demos is the fastest-improving city for quality of life in the UK. Here are six more reasons you should buy investment property in Birmingham. Read More

Property Rant 004 – You can get around the UK tax changes

Tax Changes got you worried? Ignore the doomsayers and get some professional advice, the simple strategies are already available to you. You just need to bring on a new advisor... Who? Watch the video and find out. Read More

Property investors in Birmingham benefit from higher transport spending

Birmingham is profiting from its political importance

In our article ‘Transport in Birmingham – your link to off-plan investment success, we described how Birmingham’s geographical position puts it at the heart of UK connectivity. It benefits from great road and rail links to the rest of the UK, and when HS2 arrives, the city could become a residential destination for commuters into London. However, there’s a new reason why Birmingham should be top of your property investment opportunities list: politics. We believe that Birmingham is in line for favourable treatment from the government, and it’s already started. In this article, we explain how this could benefit property investors in Birmingham for years to come. Read More

Birmingham property for sale benefits from exceptional property fundamentals

Birmingham could be the best place to invest in UK property today

In Birmingham, property for sale is benefitting from exceptional property fundamentals. It has helped the average property price increase by 6% between July 2016 and July 2017 to £185,916 ( Prices are rising faster here than the average in the UK (5.1%), and at more than twice the rate they are rising in London (2.8%). Apartment prices in Birmingham are increasing even faster – by 12% to an average of £155,971 over the same period. Read More
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