Although changes to the tax system were in 2016 dampened the mood for property investing, the Covid pandemic and resulting lockdowns and lifting of stamp duty increased the amount of homes being bought and sold. In tandem, the demand for lettings increased. This was largely due to emergence and rise of hybrid working and the reassessment of living and working habits by a vast number of people.
So far 43,000 homes have been purchased in 2022, indicating a strong market for buying and renting out. In light of this, here are the results of a £25k and a £50k lump sum delivering value for money in each area.
Isle of Anglesea:
According to Hamptons, the average property on the Isle of Anglesea takes a £40k deposit plus stamp duty. After paying the mortgage plus maintennance costs, the annual income is £10k per year, rising to £13k on a semi detached house, although that would take a £51k approx. budget.
North East Lincolnshire has a £29k and £40k entrance cost after stampy duty and deposit for a terraced and semi-detached respectively. Annual rental income averages £7.5k and £10.5k.
The North West:
Finally, Burnley has the lowest entry prices, with a semi detached attainbale for just £35k (deposit plus stamp duty) and £24.2k for a terraced, generating £9.3k from the semi detached and £6.2k p/a from the terraced house.
One More Thing:
Reddbox has just launched new insurance plans, allowing you to secure nine months of rent upfront, take out home insurance and as a free additional gift , insure electronic devices under the gadget insurance plan. You can still hire tradesmen and store documents all in the app, and let Reddbox calculate the figures for you, in time for the Making Tax Digital mandate.
Our offer: Download the app and start saving time managing your properties. Follow the screens to provide your details, and that’s it. Some of the key features why you should consider Reddbox are –
- A completely app-based, super simple service booking process.
- Options to pay for the service over a few months without any additional interest or fee. See our rates here. Be quick, we are running promotional rates at the moment.
- You can book the service seven days a week, which means no need to disrupt your busy day.
- A very transparent cancellation and refund policy.
- And the best one – Reddbox will automatically organise all the relevant documents such as invoices and certificates.