Buy-to-let investors spending more on properties in Gloucestershire, says agent
Buy-to let-investors in Gloucestershire are spending more on properties instead of expecting to pay discounted prices.
Those are the words of Julian Farr, of Farr & Farr estate agents, who said The Festival and Gloucester Rugby were continuing to attract investors to the area.
Julian said: "Buy-to-let investors want to buy keenly but they don't need discounts. Many are buying at market value. That can easily be seen. Investors last summer were buying the cheapest homes, now they are buying everything."
Julian added big events, particularly horse racing, were continuing to put the county on the map and to catch investors' eyes.
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He said: "Cheltenham Literature Festival is big as well. Historically, the races has always been the biggest event. Gloucester Rugby has grown and grown and grown and is now an internationally well-known club. It's a cracker.
"They put us on the map. These events make Cheltenham and Gloucester what they are. The heart of the Cotswolds does as well. It really is the most beautiful county."
Julian said investing in houses was a better bet than flats in the city. While flats were also lucrative, houses had more capital appreciation and in the long term would make a bigger return. But he said those with a smaller deposit may wish to consider flats or apartments instead.
He said the city was a good place to invest and not to wait any longer to do so as the market reaches full recovery.
"Gloucester is an easy place to invest in. On a £125,000 home you could borrow £90,000 on it and put £30,000 in. You could rent it out for around £625 a month. Mortgage repayments could be £330 a month. So straight away you could earn about £300 a month.
"We feel we are going on for six years now, since July 2007, in this financial crisis. It is the property market that is going to lift us out. There is more confidence out there and the property market is coming back now.
"Clever money would have invested two years ago. In other places like Bath and Cheltenham you need money to invest. But Gloucester is an easier place to buy and there are plenty of tenants around.
"When first-time buyers start to buy again, which they will do, the number of tenants will fall and the lettings market will shrink. But investors will still gain as prices rise."
Julian said two-bedroom houses, whether modern or older, were popular investments no matter the price or location in the city. He said the north-eastern parts of the city were popular towards Cheltenham and the motorway.