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Birmingham property investment – Should you do buy-to-let in the second city?

Should you consider property investment in Birmingham?

Birmingham property investmentIf you were to invest in the Midlands, where would it be and would it be a wise place to put your money? Should you be looking at city centre apartments or a bit further out such as near the University in Edgbaston?

The first key counter question is to ask what type of tenants and/or investment you are looking for? The answer will be somewhat different if you are targeting students, families, HMO style properties for professionals or welfare claimant tenants. This will then give you a pointer as to which part of Birmingham city you should be focusing your attentions on.

Once you’ve done this, you should be looking at supply and demand. In 2011 and 2012, it was common knowledge that there was a glut of apartments and flats sitting empty in densely populated parts of Birmingham such as this article in The Telegraph which warned budding investors to steer clear. However, in the same article in 2011 which talks about the top 10 places to buy in the UK, the gem of information contained within is that:

…“if the High Speed Two (HS2) rail link brings Britain’s second city within just 49 minutes of the capital, then this may turn out to be a shrewd investment”…

As it currently stands, the journey from the centre of Brmingham to central London takes 1 hour and 20 minutes which is already very good. Should a further half hour be shaved from this journey, then one could say that would be remarkable. It remains to be seen what happens with HS2, but as it stands, Birmingham is already a wise investment if, and only if, you are able to avoid areas that already have an oversupply of apartments.

Birmingham property investment – where and what?

So if we are looking at apartments in Birmingham for investment, what key points should you be looking at? We list them below:

  1. Determining where there is a glut of apartments in Birmingham
  2. Leasehold apartments come with high service charges and ground rents
  3. Areas where the rental demand is poor from any sector

Coming soon – Jewellery Quarter apartments

We have been in discussions with a partner developer to offer property for sale in the Jewellery quarter of Birmingham which, if you’re not sure, is in the desirable part of the city centre with excellent rail connections to London. We’ll announce more details in the next few weeks and hopefully you will consider such quality Birmingham property investment.

—- End of Newsletter 01.09.2014 —-

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