Every investor wants a return on their investment as soon as possible, especially if they invest in real estate. Many factors will dictate how soon this happens, with fluctuations and happenings in the market being the biggest determinants. So, how long will it take to see a return for those investing in Reading and Wokingham?
Analysing the Current Market
According to Sirius Property Finance, debt advisory specialists, homes are being built and bought where the market is the hottest, which includes the Southeast. The firm also compared the cost of homes in these areas to their demand and supply.
In England, the demand for new homes is 19.2% of the market. In the final months of 2022, construction companies started building about 45,500 homes, while 40,200 homes were completed.
A Look at the Southeast
In the Southeast, over a quarter of all homes listed on various platforms were completed in last year’s third and fourth quarters. Contractors started the construction of over 5000 homes in the Southeast. The region also saw the demand for new housing rise to 23.3%, much higher than in London, where the demand for new homes sits at 17%.
With a high demand for both new and older homes, investors have many options to choose from. Platforms like Homesgofast are already doing their part by ensuring they list properties as they come into the market to make them accessible to investors and homebuyers much quicker.
Returns on Investment in Reading and Wokingham
With such a high supply and demand for homes in the Southeast, buy-to-rent investors can expect to see a return on their investment in about three years. This is according to analysis done by looking at market data provided by platforms like Propertypal, Homesgofast, Rightmove and Zoopla.
Looking at the average asking price of a one-bedroom property in the whole of the UK and comparing that with the average rental income helps us get the approximate period for a return on investment. In Reading, the period is about 1.4 years; in Wokingham, it is 2.65 years. The right properties in both areas would bring in returns higher than 4%, which is the interest rate set by the Bank of England.
A Buyers’ Market
There are many reasons for the increased demand for homes in Reading and Wokingham. If you are interested in properties in these areas, you can read this Newspaper Wokingham, which provides all local news so you can see why it is an excellent area for investors and homebuyers.
The area’s beauty and rural and countryside life are primary reasons people move to the area, especially those looking to escape the busyness of London. There is also a lot to see and do, which is appealing to young and growing families.
Both Reading and Wokingham are great for buy-to-rent investors and homebuyers. While investors will be attracted by the high rental yield and a relatively short period for recouping their investment, families will love them for other reasons.
