I had an interesting chat with a chap who lives in Barrowby last week. He is thinking of buying his first buy to let property and he wanted my opinion on the state of the Grantham property market and if it was a good time to invest.
particularly worried that with all the newspaper headlines of a booming housing
market, there wouldn’t be any demand by tenants. One of the best pieces of advice
I can give to those looking to invest in property is a simple trick of the
trade. You can judge the affordability of an area’s property market (and thus
how much demand there could be) by simply finding the ratio of the average
property price to the average salary. The lower the ratio, the more affordable
When we put
this to the test, we found that an average property in the Grantham currently
has an average property value of around £176,600 with the average salary being
£18,510. This is a ratio of 1 to 9.5, which is very close to the UK National
average of 1 to 9.46. So lots of first
time buyers should be buying property? Not really. The issue isn’t
affordability, it’s the raising of the 5% deposit, which when you take into
account fees, will be in the order of £9,000.
inability to raise that sort of money for the deposit is driving demand for