Does the type of property you buy matter?
In the UK we have many different types of property, detached, semi-detached, terraced, bungalow, townhouse, apartments and flats to name the majority.
When choosing a property to buy to live in or as an investment your budget will of course always be the deciding factor, but once that is established the type of property you buy should also be one of your first considerations.
I’ve done some research on how each property type has performed over the past 12 months in the Alfreton and Ripley area.
So what does this mean for the Alfreton and Ripley property owner?
Over the past 12 months both towns have seen an overall increase in property price, but this increase has differed substantially across property types. Although all property types in Alfreton have seen an increase, people who invested in a terraced property should have seen the highest return if the property was placed back on the market. On the other hand, these figures show that investments made on flats in Ripley have seen a much lower return or possibly a decrease in the value of their property.
Of course, statistically very few people sell their property after one year of ownership. In the UK the average time we spend in our home before moving is around 7 years and the average time that tenants stay in a rented property is about 18 months. It is always wise to take a look at how much the market has changed since a property was purchased and review the market year on year to see whether it is increasing or decreasing in value. As with any other type of investment, it pays to know when the market is working in your favour.