A
reduction in the price of borrowing could assist many of those who are looking
to buy. As I discussed in a previous article the long term gains of investing
in property far exceed those seen in stocks and shares and what you can hope to
achieve in savings accounts.
If
borrowing becomes cheaper for the next few years then there may be more people
looking to invest in property and rents are on the increase all over the UK as
demand from tenants continues to outstrip supply.
Experts
say housing should cost no more than 30% of take home pay. Rental costs In the
East Midlands are more reasonable compared to the South East of England and as
the unemployment levels are lower than the national average the East Midlands
will continues to provide a good standard of living for professionals. A recent
BBC investigation looked at the cost of renting in the UK and I wondered how the Bingham area stacked up -
In
the Rushcliffe borough the median annual gross salary is £32,292, leaving
£2,094 a month after tax and National Insurance contributions. Experts
recommend spending no more than 30% of this on housing, which would be £628.
An
average two-bedroom home is about £566.
This
makes the Rushcliffe Borough a reasonable area to rent in, especially when you
consider 2 bedroom properties generally have two wage earners in the home.
With
rents on the increase due to the demand from tenants there would have to be a
substantial number of new investment properties purchased to buck this trend. I
am finding it harder and harder to identify good properties to blog about.
With
the numbers of properties on the market for sale much lower than we have seen
over the last few years I wonder if is this going to push up the price of the
first time buyers properties as these are often also the target of the Buy to
let investor.
Whilst
tenant demand remains high and the supply of rental properties stays low the
rents will continue to increase for tenants in Bingham.
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