Buying Property in Colchester? Is it a good idea?
Only an hour away from London by train, Colchester is an excellent choice for commuters to purchase property. And since typically people who work in London receive higher than the national average salary, there is a tendency for property prices in Colchester and Essex to be extremely buoyant. But, is buying property in Colchester a good investment long term?
Colchester properties valued 16% higher than the UK average
Currently, average Colchester property prices are around £257,000, compared to the national average of £223,000. Colchester ‘selling prices’ increased by a little more than 12% last year! Rents also increased over the same period by around 9%. So, if you’re considering investing in property, according to several local mortgage brokers Colchester offers, the town certainly has appeal, and a promise of solid returns.
What are the long-term prospects?
Considering that the national average house price rose by 4.9% last year, the growth experienced in Colchester certainly shows promise, and there’s no indication of this growth slowing. But, in the interest of balance, Colchester suffered along with most areas across the country following the recession, although no worse than the UK average decline. The good news – Colchester property prices rebounded much faster than many other areas across the UK. House prices in Colchester are currently around the 2007/2008 peak levels. Based on this, Colchester seems to have plenty of potential for further long-term growth. This applies to both rental prices and purchase prices for property in the area.
Are there still bargains to be had?
The current buoyancy of the property market in Colchester might make finding heavily discounted properties somewhat of a challenge. You should also bear in mind that not all areas within or around Colchester may be as appealing in terms of purchasing property for investment, and specifically for profit, in the long term. There have been some cases in which cash investors have made losses on investment properties, having seen little or no real growth in prices in the last ten years or so.
Be smart - get professional advice
Buying your home, or investing in property in Colchester, is appealing, provided you do due diligence and careful research, supported by local insight from experts in the property market. For investors looking to purchase student accommodation to rent out, or possibly renting out new build properties to young London executives, there are plenty of options. Market data would suggest that a yield of 7-8% could be expected, and there’s always the potential for greater yields if you choose the best locations and properties.
So, overall, based on historic data and current trends in the property market, Colchester offers plenty of opportunities, both for those looking to purchase a home, and investment property.