Are flats in Erdington good to invest in?

There are over 4,000 flats in Erdington. This represents around 20% of the housing stock here, with the national average being nearer 17.5%. The average price of flats with one or two bedrooms in Erdington is around £95,380, which is more than 4% high than 12 months ago. One of my buy to let investors asked me to help him hunt down the right flat in Erdington to buy. You can buy a one bedroom flat in the development on Northcroft Way, for a very reasonable £80,000. If a landlord put down a £15,000 deposit and borrowed the rest, they could achieve around £550 per month in rent. Providing service charge is low, yields could reach around 7.0% per year. However, you must remember that every landlord’s tax and interest rates are different, so it is essential to research your investment carefully before committing.

Finally, let’s not forget about the potential increase in capital value of the property. I was looking at the one bedroom flats in the Swan Gardens development and found that they have sold for around £36,000 in 1999. This had almost tripled in value over 15 years, to nearly £85,000 in 2014. The values did dip during the recession but we should see an increase from these values once stability returns to the Birmingham Area. If you would like some advice about what could make a good investment, please visit our office on the Birmingham Road and visit our blog http://suttoncoldfieldproperty.blogspot.co.uk/