Thursday, May 10, 2007
Category:
Secured Loans
According to Paragon Mortgages’ latest Buy-to-Let Index, Wales is considered the latest ‘hot spot’ for residential property investors. Rent has gone up by 33% over the past quarter and property prices by 18%. A positive trend can also be found in the rental yields with Wales as the only region of the country exceeding 7%. As well as this, Wales stands this month in second position in terms of total return, generating an average of 25.6% compared to the average of England and Wales as a whole of 12.9%. As a result the area has outperformed in terms of rents, yields and total returns.
John Heron, managing director of Paragon Mortgages, says: “Rents are rising strongly in Wales, but so are property values, although to a slightly lesser extent. On the back of that, investors have been enjoying steady rises in rental yields over the past few months, up from 6.3% to 7.1% in one quarter. With a positive economic backdrop underpinning growth in tenant demand, it is not surprising that Wales is the country’s top performer in terms of yield, and the only region to generate average rental yields in excess of 7%.”
The average annual rent in March achieved by landlords in Wales was £11,251; this is up 32.7% on the figure from December of £8,480, on a typical property worth £158,239, up 17.5% on December’s figure (£134,727). An investor who bought a property one year ago will have generated an average total return of 25.6% or £34,079 on a property worth £133,297 in March 2006.
John Heron concludes: “The astute landlord who invested in buy-to-let in Wales this time last year will have achieved almost twice the national average total return. While the national picture remains strong, residential property investment looks particularly attractive in Wales. Trends in the local economy are very positive, creating new jobs and causing an influx of workers into the area, which in turn fuels tenant demand”.
................................................................................................
For those not living in a buy to let property, but their own home, and who want to carry out some home improvements, could do so with a secured home improvement loan. One of the many options available to improve and maintain homes, a home improvement loan can cover the cost of redecorating as well as bigger projects like extending or redoing kitchens and bathrooms. Simple home improvements like decorating or simply buying new furniture can add character to a property making it more homely. Made payable over a term to suit the borrower from 5 to 25 years, a secured loan can assist homeowners through large or small projects. Extending properties through the building of conservatories or room extensions could add value to properties and allow for more space for growing families.
