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 recently on how each property type has performed over the past 12 months in the Amber Valley area.
Below shows the average price paid over the past 12 months for each type of property in each town. (data provided by Zoopla)
So what does this mean for the Amber Valley property owner?
Over the past 12 months all towns have seen an overall increase in property prices, but this increase has differed substantially across property types.
Although all property types in Ripley have seen an increase, people who invested in a flat type property should have seen the highest percentage increase with flats rising in value by 5.98% over the past year.
Belper saw the highest increase of any town in our area; with its terraced houses achieving more than a 9% increase in sale prices and property prices across all four housing types being the highest in the area for another year running.
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 that property 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.